Cardlytics tumbles on convertible debt deal plans

Cardlytics

26/03/2024 14:32

** Shares of digital advertising platform Cardlytics
 CDLX.O  tumble 38.8% to $12.40 early Tues as it looks to raise
capital
    ** Co says offering privately $150 mln 5-yr convertible
bonds (CBs)
    ** Co to use net proceeds to repurchase portion of its 1%
CBs due 2025, any remainder for general purposes, including
working capital, opex and capex
    ** CDLX shares on Mon rose 27% to $20.25, highest levels
since Jul 2022
    ** On Mar 15, stock surged 77% after co forecast
consensus-topping current qtr rev of $70-$73 mln, as analyst
pointed to agreement with American Express  AXP.N  and renewal
of JPMorgan Chase  JPM.N  contract
    ** Co has roughly $550 mln market cap, per LSEG data
    ** Shares have more than quadrupled over the past 12 months

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))