Aroa biosurgery. Nz company listing on asx

[percy]

Quite a large drop from the SSP with news due this week. Just being hammered with the general market or is there more to it?

The share price weakened after the 25th November half year report.
Looks as though there were too higher expectations built into their share price at over $1.50.
I do not know whether the current 84 cents is good buying or not ,as cash outflow from operating activities were $5.8mil for H1 .FY 22.which seemed to me to be high compared to their $17.2 mil revenue.

[The diver]

I could understand the consistent downward trend with too high expectations could account for the decrease to $1 but a ~12% drop on Monday with no news seems drastic. I see from the financial report that Net cash outflow of $5.8m included a one of interest expense of 1.5M for their debt which was paid off with the capital raising. So ongoing should be less. Increased staffing though probably going to be a big ongoing cash outflow increase.

Their revenue guidance for FY22 is based on an assumed exchange rate of 0.72 NZD/USD. It has been consistently lower than this since the announcement so I wonder if this could have an impact at all on the final announcement.