Topic: Rubean successfully placed a 10% capital increase. Further, it agreed with Cyclcebit to convert the outstanding convertible bond into a regular bond that is now due in three tranches. Both initiatives should ease the liquidity situation. In detail:

Capital increase secures growth ambitions. By using the existing authorized capital, all 327,626 shares were placed at an average share price of € 6.06 per share, increasing Rubean's share capital from € 3.276m to € 3.604m. The proceeds from the capital increase amounts to € ~2m and should be i.e. used to finance the ramp-up of closed and upcoming partnerships that should fuel the company's topline, ones up and running.  

Agreement with cyclebit relaxes liquidity situation. Rubean and Cyclebit reached an agreement on the modalities of the expiring convertible loan of € 3.4m from 2022. Cyclebit waives the option to convert the loan into shares and agreed on the repayment in three stages together with interest. We expect the repayment of the first tranche (eNuW: 1/3 of the total amount) including interest within the next weeks and the next tranches not before FY25. This should ease the liquidity situation and let room to finance the growth of the company.

Product roll-out in full swing. Rubean has signed a whole series of important strategic partnerships within a short period of time (i.e. SEUR, Global Payments, Correos, emerchantpay), all that indicate that Rubean´s leading softPOS product is ready and that the roll-out is in full swing. Consequently, management expects for FY24 to grow sales by 135% at mid-point to € 2.2-2.5m. On the back of the recently announced cooperations (i.e. with Global Payment), paired with further likely customer wins, we consider this guidance as achievable, anticipating sequential improvements and € 3.0m sales (eNuW).

As we see Rubean at the forefront of the rapidly growing market for mobile payment acceptance systems, we expect Rubean to achieve profitability by FY25 and and consider managements mid-term vision of € 10+m in sales and 40+% EBIT-margin by FY27 as reasonable. However, in light of the expected steep growth trajectory resulting from partnerships starting to materialize, delays in execution could have a huge impact on estimates.

BUY with an unchanged PT of € 9.00, based on our DCF.