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  1. #81
    Guru Rawz's Avatar
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    Quote Originally Posted by silverblizzard888 View Post
    It does appear a capital raise will be likely just to prop up the balance sheet, but based on their current cash burn rate of $340k per month and $1.85m in the bank at 31st March, they have over 5 months in cash, which would last until August to the very least, but that isn't counting that their business is constantly growing which means their cash burn is lower every month, which looks like its just enough to get to cash profitability.

    Since they have growth plans, they will be wanting capital for growth and acquisitions rather than for maintaining where they are now, which is a very different perspective than your normal capital raise where if a company was not able to raise capital that would be the end. I would see a capital raise being a good thing if they needed the capital for growth just so they can maintain their momentum rather than being like Paysauce that completely halted their growth just so they could be self funding.
    I agree Silver, nothing wrong with a cap raise to continue growth. This is the reason why companies are listed- to access capital. As long as eventually earnings turn positive ay...

  2. #82
    Guru Rawz's Avatar
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    Maybe raise $5m at 60 cents a share? 8.33m new shares issued

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