Pinned straw:
Cap raise inbound!
Let's wait until we see the details, but i suspect the cost of capital could be up there. And if it's just for 'working capital purposes it's more difficult to swallow. Perhaps another situation where a line of credit would be more appropriate? Anyway, getting ahead of myself.
We will see.
NewbieHK
Maybe it’s a cap raise for another special dividend?
Sometimes you need to smile, take a deep breath and have a little chuckle to yourself in small cap land.
Vandelay
Good thing they paid out near half a million in a special dividend to shareholders after Q1, just to now ask for it back...
fcmaster26
They probably only need another 5m for working capital so the business can keep breathing.
I don’t think they will need lots of cash to expand though. It’s not like they’ve got heaps of contracts to fulfill and the Telstra deal shouldn’t be too capital intensive.
Worst case scenario, $5M at 10c, and our share got diluted by around 30%.