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Blue Apron believes its cash and borrowing capacity will be sufficient for at least a year, it said in its revised deal prospectus after lowering its IPO price
by ithinkinstereo 9y ago
Blue Apron believes its cash and borrowing capacity will be sufficient for at least a year, it said in its revised deal prospectus after lowering its IPO price range.
That's crazy they only have a year's worth of runway. I'd imagine that today's tepid IPO is going to make it that much harder to raise additional private capital. Looks like they'll have to take on additional debt financing just to keep the lights on, let alone fuel more growth.
That seems to be backed up by the final paragraph:
With its reduced IPO, Blue Apron no longer intends to pay down existing debt with the proceeds, according to its deal filing. Instead, the funds will all go toward working capital, capital expenditures and general corporate purposes.
If you didn't catch it, there was an excellent discussion about Blue Apron the other day: https://news.ycombinator.com/item?id=14646679 https://news.ycombinator.com/item?id=14646679
- M_PatrickCPA 9y agoI wouldn't necessarily conclude that they only have one year's worth of runway. Many companies state that they are funded for the next 12 months. It can be pretty boilerplate. See comparison of Blue Apron vs. Apple below. Blue Apron (1): We believe that our existing cash and cash equivalents, together with cash generated from operations and available borrowing capacity under our revolving credit facility, will be sufficient to meet our anticipated cash needs for at least the next 12 months. Apple (2): The Company believes its existing balances of cash, cash equivalents and marketable securities will be sufficient to satisfy its working capital needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with its existing operations over the next 12 months. (1) https://www.sec.gov/Archives/edgar/data/1701114/000104746917004316/a2232581z424b4.htm https://www.sec.gov/Archives/edgar/data/1701114/000104746917... (2) https://www.sec.gov/Archives/edgar/data/320193/000162828016020309/a201610-k9242016.htm#s312F59D5215853C98A92CF2CB1813E50 https://www.sec.gov/Archives/edgar/data/320193/0001628280160...