Originally Posted by
Snoopy
Last year ATM burned through $4m in cash, while using Australian cashflow to support entry into the UK market. The cash balance decreased by $4m. They expect two more years before this turns around, so in rough figures another $8m. ATM will probably need to spend that much in the USA too over that time, another $8m. Two lots of $8m will exhaust the cash balance.
So the way I see it ATM is now on a knife edge. If anything goes wrong with their business plan from here, it's all over. Not for A2 milk itself of course. No doubt some canny player will rescue the A2 IP from the ashes and do very well. But existing shareholders will no longer be part of that picture. They will have lost their capital and get nothing. This doesn't look like an exciting investment prospect to me.
SNOOPY