After requesting a trading halt earlier this week, consumer lender MoneyMe moved to suspend trading in its shares yesterday as it continues to negotiate a capital raising and changes to its corporate debt facility. In a statement to the ASX, the company said negotiations with multiple parties were incomplete. It expects the voluntary suspension to remain in place until it is able to announce the outcome of its negotiations, or March 30 at the latest. In December, MoneyMe revised its syndicated facility agreement with Pacific Equity Partners, including a reset of financial covenants and a requirement to meet agreed milestones relating to the progression and implementation of a strategic capital initiative. The milestones include an obligation to pay down A$25 million, plus accrued interest, fees and other amounts, in order to bring the balance of the debt facilities outstanding under the facility agreement to $50 million. At December 31, the outstanding amount was $78 million. If the group is not compliant with the revised facility agreement and if agreement on alternative terms, or extension of time, cannot be reached with PEP, MoneyMe will be required to repay the total amount outstanding in calendar year 2023. The company’s financial report for the six months to December, released on February 28, acknowledges that if it is unable to meet its commitment under a revised funding agreement with PEP “a material uncertainty would exist that may cast significant doubt on the group’s ability to continue as a going concern and, therefore, its ability to realise its assets and discharge its liabilities in the ordinary course of business”. At the company’s half-year results presentation, chief executive Clayton Howes insisted that MoneyMe was in a strong earnings and cash flow position after bouncing back from a heavy loss in 2021/22. MoneyMe acquired SocietyOne last year and the December half was the first full reporting period reflecting the impact of the acquisition. Interest income was $118.7 million for the half – almost three times the $44.7 million of interest income in the previous corresponding period. Net profit was $8.8 million, compared with a loss of $18.7 million in the previous corresponding period. Net cash flow from operating activities more than doubled to $73.4 million. The average cost of funds rose from 5.3 per cent in the December half 2021 to 6.5 per cent in the latest half. Howes said the company took a cautious approach to loan originations during the half, which was reflected in a fall in originations, which were down 45 per cent from the previous corresponding period to $242 million.