Appen's got the hat out to shareholders again -

Highlights

• A$50 million underwritten institutional placement to provide balance sheet flexibility to fund

generative AI related opportunities (Placement)

• Appen has returned to underlying EBITDA and underlying cash EBITDA profitability in Q3

FY24, having taken the necessary steps to manage its cost base in line with the revenue

opportunity

• Appen’s external customer environment continues to show signs of improvement,

particularly from generative AI related projects. Proceeds from the Placement will provide

additional liquidity to fund working capital and provide greater flexibility to pursue

generative AI related opportunities

• Upon settlement of the Placement, Appen will have a pro-forma cash balance of

approximately US$62.4 million

• Opportunity for eligible existing shareholders to participate via a non-underwritten Share

Purchase Plan (SPP) which is targeting to raise a further A$5 million at the same offer

price as the Placement (A$1.92 per share (Offer Price))

The accompanying trading update and commentary are positive, but I don't like the repeated issuance of new shares, and I doubt the market will be too (though happy to be surprised!).