Why the Marley Spoon (ASX:MMM) share price is up 33% in a month

This meal kit delivery company has raised funds to boost its growth…

| More on:

Should you invest $1,000 in Zip Co right now?

Before you buy Zip Co shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Zip Co wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

meal preparation of healthy food in a family kitchen

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Marley Spoon AG (ASX: MMM) share price is on the rise again on Thursday.

At the time of writing, the subscription-based meal kit delivery company's shares are up 1.5% to $3.20.

This means the Marley Spoon share price is now up 33% since this time last month.

Why is the Marley Spoon share price pushing higher today?

Today's rise in the Marley Spoon share price has been driven by the release of an announcement this morning.

According to the release, the company has signed and closed a committed senior secured credit facility of four years with Runway Growth Credit Fund.

The release notes that the facility will give Marley Spoon access to up to US$65 million to support it with its growth strategy.

What are the terms?

These funds are being made available to Marley Spoon in two tranches. The first tranche is for up to US$45 million, of which US$30 million has been drawn at closing. The company has the right to draw the remaining balance of US$15 million until 30 June 2022, subject to being in compliance with the facility agreement.

The second tranche is for US$20 million and is available to be drawn through to 30 June 2022. Access to this tranche is conditional upon Marley Spoon being in compliance with customary financial covenants as well as undisclosed net revenue and contribution margin-based performance milestones.

Marley Spoon's Chief Executive Officer, Fabian Siegel, was pleased with the agreement.

He said: "We are pleased to commence this new loan agreement with Runway and look forward to a productive engagement with the team of this leading US debt provider. The Facility provides access to debt financing to fund our growth strategy."

Why are its shares up 33% in a month?

The Marley Spoon share price has been a very strong performer over the last few weeks and is now up 33% in a month. This is due to the belief that the recent lockdowns in Australia will give its ANZ sales another major boost, just like they did a year earlier.

Not that its ANZ sales necessarily need boosting. During the first quarter, Marley Spoon reported a 51% increase in active ANZ customer to 123,000 and a 67% jump in meals to 4.6 million.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Marley Spoon AG. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

View of a mine site.
Broker Notes

How much upside does Macquarie tip for Deterra Royalties shares?

Deterra Royalties offers ASX investors a different way to invest in global mining.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

3 reasons to buy this surging ASX All Ords gold stock today

The ASX All Ords gold stock has doubled investors’ money in 12 months, and this leading expert forecasts more outperformance…

Read more »

Woman with $50 notes in her hand thinking, symbolising dividends.
Broker Notes

Broker reveals outlook for ASX dividend shares amid volatile market

Peter Gardner from Plato Investment Management tells ASX investors where to look for dividend income this year.

Read more »

Two colleagues at work looking at a tablet and smiling at a rising share price.
Share Gainers

Why Generation Development, Orica, Pro Medicus, and Zip shares are storming higher today

These shares are having a strong session on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ANZ, Brainchip, Light & Wonder, and Pilbara Minerals shares are falling today

These shares are tumbling on Thursday. But why?

Read more »

A picture of the US Federal Reserve podium for making media announcements.
Share Market News

Why the Fed just left interest rates on hold and what ASX investors can expect next

With the Fed keeping interest rates on hold, when can ASX investors expect the central bank’s next cut?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Up 114% in a year, why is the Pro Medicus share price leaping higher again on Thursday?

Pro Medicus shares are back in form today and leaping ahead. Here’s why.

Read more »

A railway worker walks along the train tracks in a visi vest and speaking into a walkie talkie.
Share Market News

Are Aurizon shares a buy, hold or sell based on Macquarie's report?

Here’s what this broker has to say about this Industrials stock

Read more »