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Voluntary De-listing of this Digital Payment Company from ASX - SZL

Dec 19, 2023 | Team Kalkine
Voluntary De-listing of this Digital Payment Company from ASX - SZL

SZL:ASX
Investment Type
Small-Cap
Risk Level
Action
Rec. Price (AU$)

Company Overview: Sezzle Inc. (ASX: SZL, NASDAQ: SEZL) is a purpose-driven digital payments company that provides an alternative payment platform offering interest-free installment plans at selected online stores and select in-store locations.

1.1 Latest Updates

  • Sezzle Inc. has received in-principle approval on 13 November 2023 from the Australian Securities Exchange to be removed from the official list of ASX.
  • The Management at Sezzle Inc. has concluded that the financial, administrative, and compliance obligations as well as the costs associated with maintaining an ASX listing are not justifiable.
  • Suspension of CDIs on the ASX will take effect from the close of trading on 14 January 2024, the suspension date. The CDI holders will not be able to trade henceforth.
  • Sezzle is expected to get delisted from the ASX from the close of trading on 16 January 2024, the Delisting date.
  • The CDI holder can sell all the CDIs on the ASX prior to the suspension date or request to convert all the holdings into common stock listed on NASDAQ before 5:00 pm on 16 January 2024. If the holder wants to convert, is required to complete, and submit a CDI cancellation form to the company’s Australian CDI Registry.
  • Benefits of delisting: The NASDAQ listing will attract more potential for international investor interest, the company’s trading volume on NASDAQ may increase and provide better liquidity to the shareholders.

1.2 Key Risks and Challenges

  • SZL operates in a highly competitive industry. There are risks arising from macro-economic conditions that can impact consumer spending.
  • As it is a digital payments company: data security breaches, cyber-attacks, phishing, or similar disruptions can impact company operations.
  • The company is exposed to risk arising from the failure of key vendors or merchants to comply with legal/regulatory requirements.

1.3 Stock Update

The company's latest product offerings and product enhancement continue to support revenue growth. It has significantly reduced third party technology, personnel, data, and marketing expenses.

The stock has witnessed a rise of ~37.9% in the last month, and over the last three months, it has risen by ~6.69%The stock has a 52-week low and 52-week high of AUD 11.75 and AUD 31.54, respectively and is currently trading below the 52-week high-low averageAt the market close of 19 December 2023, SZL was trading at a price of AUD 21.50.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 19 December 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.


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