Cettire founder buys $2.7 million in shares
- Cettire CEO Dean Mintz spent over $2.7 million to purchase additional shares in Cettire.
- Cettire is facing financial pressure alongside a net current asset deficiency of $51.8 million.
- The share purchase increases the founder's ownership stake as the company secures cash to resolve tax refund delays.
Cettire (ASX:CTT) founder and CEO Dean Mintz purchased 11,437,140 shares in the online luxury retailer for more than $2.7 million.
The transactions occurred at an average purchase price of 23.9 cents per share, lifting the founder's total holding in the business from 35.98% to 38.98%.
To address ongoing cash needs, the company agreed to sell a portion of its Italian value-added tax receivables book to an Italian bank at a discount to unlock approximately $22 million in cash.
Following the announcement, the Cettire share price was up at $0.28.
The cash crunch stems from administrative delays by the Italian government in processing tens of millions of euros in tax refunds for the drop-shipping retailer.
Auditor Grant Thornton flagged a net current asset deficiency of $51.8 million against current liabilities exceeding $101 million, leading Mintz to offer up to $13 million in additional funding if required.
