If they are raising 6M+ then that would be likely 2+ years worth of funding (or maybe all the funding). Which will mean they wont be asking for additional capital anytime soon and 2 years is a long time with this board in place so if they were to raise again it would be multiples of today.
ICI recently raised at 2c and was oversubscribed and the very next day with no other announcements their SP went to 7.3c high which they then did another raise at 4.5c and it went to over 9c all off no news besides capital raising. My guess was people now know there is plenty of money in the bank and there is very little chance the company is going to need to seek capital anytime soon so best to get in now than wait 2 years if they were to raise and potentially pay multiples of todays.
After all this boards pedigree is impeccable with them all working at very senior positions at Disney, Midway, EA, Spotify, Google and Canva, where they have built revenue streams from 0 to over 500M within years - so even if they get 10% of that being 50M there is no way the SP will be ~1c.
So if true the board have everything they could want of funds, all star board and already a good pipeline of deals either completed, in progress or still to finalise/announce - all that would be left is to deliver.
ESH Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
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