The Sezzle Inc (ASX: SZL) share price is rebounding from yesterday's huge selloff on Thursday morning.
At the time of writing, the buy now pay later (BNPL) provider's shares are up a decent 3% to $8.40.
Why is the Sezzle share price sizzling today?
The catalyst for the rise in the Sezzle share price has been the release of a positive announcement this morning relating to Discover Financial Services.
Discover Financial Services is a digital banking and payment services company with one of the most recognised brands in U.S. financial services. The Discover Global Network has 48 million merchant locations and generated US$417 billion in total network volume last year.
According to the release, Discover Financial Services has agreed to invest US$30 million into Sezzle, based on a per share purchase price of US$6.58 (AUD$8.83). While this represents an 11% premium to the Sezzle share price at the close of play on Wednesday, it is a modest discount to where its shares were trading prior to yesterday's Apple-related selloff.
The shares will be issued to Discover via Sezzle's existing placement capacity under Listing Rule 7.1. This means that the issue does not require shareholder approval. These shares are due to be issued early next week.
Expanded partnership
In addition to the investment, the two parties intend to enter into an expanded partnership. This includes plans for a buy now, pay later network solution on the Discover Global Network, as well as a dedicated referral program. This program will introduce Discover credit and debit products to Sezzle's customer base.
Sezzle's Executive Chairman and CEO, Charlie Youakim, was very pleased with the development. He commented: "We are excited about our relationship with Discover, as we believe our mission, vision, and values align."
"Discover's capabilities via their network and financial products will enhance our own offerings and provide more paths to financially empower our consumers," he concluded.
Following today's gain, the Sezzle share price is now up a sizeable 34% since the start of the year.
