Wasteco Group Ltd ---WCO

[bull....]

dont know what the previous 2 on about ?

not the end of the world senario those 2 paint

300k loss for yr if you remove listing costs
hasnt accounted for cleanaways aquisition in financials that be this new yr
5m in current liabilities is for cleanaways aquisition in current accounts

would be good if they provided more financial details in aquisition notices though esp if they have some lined up soon as they suggest

[winner69]

Raising capital ….trading halt

Probably need in excess $10m to make balance sheet a bit more ‘respectable’ ..but really needs a lot more if going to acquire more things

No doubt retail investors will end up heavily diluted

[bull....]

Raising capital ….trading halt

Probably need in excess $10m to make balance sheet a bit more ‘respectable’ ..but really needs a lot more if going to acquire more things

No doubt retail investors will end up heavily diluted

think they alluded that they have some aquisitions lined up at the results announcement so may be for that

they should do a stock consolidation at some stage if they are going to raise more capital for aquisitions down the track

here's the announcement just saw it

http://nzx-prod-s7fsd7f98s.s3-websit...857/396267.pdf

they going to do SPP as well

[Rawz]

Glad they are raising capital. Looks like they were about to tip over.

And hey, thats the reason they listed- to access capital. Nothing wrong with that

[whatsup]

Glad they are raising capital. Looks like they were about to tip over.

And hey, thats the reason they listed- to access capital. Nothing wrong with that

Raw, please elaborate - tip over, why would the make a takeover to the two operations last week and why would the vendors accept if that was the case ?

[Rawz]

Raw, please elaborate - tip over, why would the make a takeover to the two operations last week and why would the vendors accept if that was the case ?

I didnt think the recently released financials made for good reading. Just the balance sheet looked very week and the free cashflow was negative

[silverblizzard888]

To sum it up the company's just working on a really tight balance sheet, they aren't in imminent danger, but every move they make requires extra capital raising. They are servicing their debt no problem at the moment, but they either had to raise more money to continue expanding for more cashflow or to pay down debt. Its the type of company that can't slow down or the valuation takes a massive dive. Its a good opportunity to raise more capital while they're riding high, even at 6.5 cents (compared to market 7.5cents) they are getting a good deal and maximizing their value proposition to boost their balance sheet. After the capital raise and a few more acquisitions the risk lowers as their positioning to service their debt is better, its a good use of being a public company. I'm still on the edge for the company; I really like what they do, I think their growth is amazing, but the share price and debt doesn't allow for any margin of safety.

[bull....]

http://nzx-prod-s7fsd7f98s.s3-websit...918/396334.pdf

raised just over 4m .. pretty good outcome with an institution on boarding as well

to be used for working capital and aquisitions .... not debt reduction as some were thinking

[winner69]

March 30th debt was $21.2m and shareholder equity $9.9m

Since then paid $5.2m cash for Cleanways acquisition and got $6.5m new capital (new shares for Cleanways acqusition and the capital raise)

So roughly debt/equity position much the same as back in March and pre Cleanways

Seems if they acquire more things more new capital needed

Wonder how much they tap shareholders for in the SPP

[silverblizzard888]

The extra $4.32million combined with offer of shares in new acquisitions should allow them another $5-7 million in more acquisitions unless they decide to spend a good portion on buying equipment to grow existing businesses. It should help propel the business revenues for FY24 to $50-60 million, which would be some good growth. Expecting another capital raise in another 6 months time after they use all the money to further their growth and align new acquisitions with the existing main business structure and brand. My valuation on a per share basis is about 5.6 cents. They would need to show stronger improvement in operating profit and cashflow to warrant a higher value in my books.