I'm critical of DXN but you are misguided here.
They were tracking along fine in Dec, was trading around 5c, Work in hand was around 7 mil at that time and the target was to achieve 12 mil by June 30.
Which they have now achieved 2 months early with possibly some more modules sales to come & DC tenants.
What triggered the negative sentiment was the CR @ 4 cents, the lack of clarity behind the why $3 mil was required for working capital, which has now been categorized into $2 mil for Module Manufacturing and $0.9 mil for staff.
The first version of the CR was at 4 cents, their decision to extend the date came back to bite them in the ass because during that period there was a sharp market downturn across the board.
I'm suspecting that the decision to extend the CR date was advised by the board and subsequently was their undoing.
To all holders, one must ask themselves, had the initial CR at 4 cents had not been announced and they have achieved that they said they were going to, would you not value them higher than what they were in Dec 19?
I was not going to participate in the CR at 4 cents or was i going to at 2 cents. At 1 cent, with the attached options & 3 year expiry date, it is a compelling offer.
Consider this, they will have 2 fully operational DC's, the demand for modules has proved to be consistent, CEO has declared that they have not incurred any losses on the modules projects and that it is highly profitable (refer to investor conference). Their is still demand for modules even in this current economic environment, they are critical pieces of infrastructure, especially with the data and latency demands.
At 1 cent, massively undervalued, say they achieve $25 mil revenue Jun 2021, easily valued at 6-8 cents +.
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