Pinned straw:
Now that we’ve known this capital raise is just for getting some working capital, I have more questions for Mal next week.
The company’s CFO said AVA had enough capital to fund the growth. Would it be too harsh to ask “Why did you lie to my face?”? I just don’t know how to ask this question in a more subtle way.
Strawman
Not unreasonable at all @fcmaster26
I'll put it to Mal as best I can. But it's a fair question.
RhinoInvestor
@Strawman & @fcmaster26 Maybe ... "Why do you have such a poor handle on your company's future cash burn vs cash receipts that you said you have adequate capital to fund growth" (or something a little less confronting than calling the fellow a liar but equally scathing by implying a massive lack of competence).
better still ... can you please just get them to walk us through these two pages from their latest investor presentation and explain:
- How is the incremental 3m in Opex (what they raised by issuing new shares) actually going to deliver 20m in additional revenue
- How is that additional 20m of revenue forecast across the next 28 months.
- Where is the sales backlog to justify the 20m of incremental revenue given there only looks like 8.9m of sales backlog (i.e. where is the sales funnel for H2 which should be substantially larger than the order intake for H1 ... its usually good to have > 2x coverage (in case opportunities slip) especially we are now half way through H2 why couldn't they have included an updated Sales pipeline (pretty average IMHO)
- Why couldn't they have taken on 3m of Debt to fund the necessary Opex (given they took in record sales and have a high GM presumably funding a 3m loan would't have been that onerous given they only have about 2.2m of debt on the balance sheet (30/12/23) and has 111K of financing costs last half.
