☕️ Wardrobe malfunction

Luxury of clarity is what Cettire shareholders need

Good morning.

Monday morning hit Cettire shareholders like a Gucci loafer to the face, as their stock value plummeted nearly 50%.

Despite endorsements from Regal Funds and Cat Rock Capital Management, the luxury ecommerce platform is one of the most shorted stocks on the ASX. So an earnings warning, described as "an unmitigated disaster" for the retailer’s once-golden yet obscure business model, was all the shorts needed.

The retailer, famed for selling luxury goods at attractive discounts, now faces scrutiny over its business model and duties practices, which have raised eyebrows since March. “Their unit economics are shot,” a keen observer told Capital Brief’s Jack Derwin, highlighting concerns over returns, chargebacks, and disputes.

The luxury of clarity is what remaining shareholders desperately need now, as they brace for potential surprises in the quarters ahead.

ASX as at market close. Commodities and crypto in USD.

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Market movers

ResMed’s shares nosedived over 13% on Monday, as Eli Lilly's new weight-loss drug trial results stoked fresh fears for the sleep apnoea market.

Despite being the darlings of Australian fund managers, ResMed’s stock tumbled $4.22 to $27.74, thanks to tirzepatide’s impressive reduction in sleep apnoea severity.

As the market digested this bitter pill, analysts like Morgan Stanley’s Sean Laaman reckons the CPAP machine market isn't under siege just yet, suggesting that more awareness of sleep apnoea might actually funnel more patients towards ResMed’s devices.

The quick sync

  • Slimmer margins are driving Bitcoin miners to green energy. (Capital Brief)

  • Herbert Smith Freehills beefs up energy, ESG practices to ride regulatory wave. (Capital Brief)

  • Canva reaps dividends from $50m developer fund as growth explodes across app marketplace. (The Australian)

  • Start-up funding bounces back with 30% increase in capital raised this year, despite a decline in deal numbers. (AFR)

  • Vision Super weakens ESG policy, buys up Whitehaven shares. (AFR)

Trading floor

M&A

  • Paladin Energy is set to acquire Fission Uranium for $1.25b. (Capital Brief)

  • Myer has proposed acquiring Premier Investments' Apparel Brands business, including Just Jeans and Portmans. (Capital Brief)

  • Cleanaway’s acquisition of Citywide’s waste business may face issues with the ACCC due to reduced competition in the Melbourne market. (AFR)

  • The Carlyle Group emphasizes its ability to bid for the entire Loscam Asia Pacific business, including China, in the ongoing auction. (AFR)

  • Brookfield has halted its plan to separate Healthscope's top-performing hospitals and proposed an alternative to lenders, awaiting their decision. (The Australian)

  • Drummond Golf's owners have hired Lion Advisory to initiate a sale after 22 years of ownership. (AFR)

  • Monadelphous saw its ASX stock rise after securing four new contracts in the resources sector worth around $120m. (Capital Brief)

  • An unidentified buyer aims to acquire at least 10% of Spartan Resources. (AFR)

  • Neoen CEO Xavier Barbaro highlights the capital intensity and complexity of the renewables sector as reasons behind Neoen's move to go private with Brookfield in a $10.6bn deal. (AFR)

Capital Markets

  • CSR, Boral, and Adbri are being privatized for $10.6bn amid a construction downturn, with expectations of recovery by mid-2025 pending interest rate cuts. (AFR)

  • Mercury NZ has launched a NZ$300m capital bond offer for institutional and New Zealand retail investors. (Capital Brief)

  • Armaguard has secured a $50m lifeline from major banks and retailers to support its cash processing, storage, and transport operations over the next year. (BNA)

VC

  • Andromeda has raised $3m led by Purpose Ventures to develop Abi, a robotic companion designed to offer companionship and support to people of all ages. (AFR)

  • Tenacious Ventures has secured $18m in commitments for the first close of its second fund, Tenacious Ventures Fund II. (Startup Daily)

  • Affinda is concluding a $10m funding round, boosting its valuation to $120m. (Capital Brief)

People moves

  • Webjet has outlined leadership changes for its consumer-facing business division ahead of its proposed demerger. (Capital Brief)

  • Seven West Media has cut up to 150 jobs across its business, mainly affecting east coast roles in areas like marketing and printing. (The Australian)

  • Matt Kean, former NSW Liberal MP, has been appointed as the next chair of the independent Climate Change Authority by the federal government. (Capital Brief)

  • Citi appointed David Bailey as head of Debt Capital Markets for Australia and New Zealand. (The Australian)

☝️ Know about a deal or people move we don’t? Hit reply.

Together with FinTech Australia

Apply now to speak at Australia’s premier fintech festival

FinTech Australia is calling for speakers at Australia's most thought provoking fintech festival, Intersekt, on the 18 and 19th of September, 2024!

Global and local fintechs, banks, financial institutions, regulators, government and investors will participate to hear from key thought leaders that are enabling the next generation of innovation in Australia.

The themes for this year include green fintech, policy-driven technology innovation, funding and growth journey, market-driven innovation, and cyber resilience.

Submit your Expressions of Interest before 1 July at intersektfestival.com.

The watercooler