Barely 6 months after raising at more than 3x the current CR price, the company is out again with its hat (or begging bowl) extended eagerly to the market.
It's $30m now, but still highly dilutionary given the steep discount to the current market price (~35%). The reason for the raise is just as bad - to fund working capital needs.
And oh, the CTO has moved on barely after few months into his job.
Why would any market participant bother to participate is beyond me. This company just knows how to light shareholder wealth on fire.
Summary of the announcement -
Appen provides FY23 trading update as at 31 October 2023
• Appen remains committed to return to profitability with additional $14
million of cost reduction, bringing total run-rate cost reduction initiatives
that have been or will be implemented over 2023 to $60 million
• Equity Raising is comprised of a ~A$23.6 million 1 for 3.65 pro rata
accelerated non-renounceable entitlement offer and a ~A$6.4 million
institutional placement
• Proceeds will be used to provide balance sheet flexibility and general
working capital to support Appen’s return to profitability, and transaction
costs
