The Sezzle Inc (ASX: SZL) share price is rocketing higher on Tuesday.
In early afternoon trade the buy now pay later provider's shares are up a massive 26.5% to $1.72.
At one stage today Sezzle's shares were up as much as 30% to $1.77.
Why is the Sezzle share price rocketing higher?
Investors have been buying the shares of the Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) rival after it released its third California Financing Law License update in five days.
In case you missed its previous update. Sezzle's shares were sold off last week when it revealed that the California Department of Business Oversight (DBO) had stated its intention to not approve its application for a California Financing Law license to make loans.
This licence would allow the company to move away from its existing and convoluted model in the state.
What happened?
The DBO statement stated that Sezzle had engaged in "illegal unlicensed lending in the state."
The company denied this, advising that it does not operate as a lender. Instead it operates under a different financing model as a sales finance company and does not make loans.
It also advised that it planned to continue to work with the DBO to correct any issues so that it can proceed with its plans to develop a loan product in the state.
Which brings us to today. This morning Sezzle revealed that it has held its first call with representatives from the California DBO.
Based on those discussions, the company revealed that it is confident that it can create a successful application for a State of California Finance Lender License.
No further details were provided, but the company intends to update the market with any material developments as and when they happen.
