News: GSW Getswift Secures Funding Up To Us$45M From LDA Capital, page-10

This deal has enormous red flags associated with it.

Why does a company with a $57m cash balance at 31 Dec 19 and a $22m cash burn pa need raise this amount of funding.

And then you look at the deal, and see that rather than an an investment, it is essentially an underwriting agreement:
- counterparty needs to be able borrow stock so that it can sell it down over the trading period
- limited to 10x average trading volume, which at current levels of turnover is well under $1m raised at each time (a 44 day trading period). Under current market turnover conditions, they could not even raise one third of the total limit.
- management credibility shot again by dressing this up on an investment/long term partnership.

This structure puts downwards pressure on the share price because it is always trading cum-issue