Ann: MPower Expands Pipeline of Renewable Energy Sites to Nine, page-8

We have originally held a sizeable position at an average price of $0.115, expecting that revenue will continue to grow.

However, the latest quarterly showed that revenue had decreased significantly, from the previous quarter of ~$3m to $1m and below last year's corresponding period. There are no apparent reasons given in the quarterly activity statement; instead, it focused on future growth.

Despite having heavy interests in renewable companies, we have exited MPR at a loss of $0.10. As we do not understand the contributing factors to last quarter's revenue decreased, we have concerns that these factors may amplify through growth. Also, we have no line of sight in the timing when the business becomes cash-flow positive.

We were attracted to their $150m growth aspiration and their 5MW solar farm cookie-cutter strategy. Hence, we will continue to monitor this company should a turnaround happen in future quarters.

Further reference:
https://www.pv-magazine-australia.com/2019/03/17/long-read-delays-spell-disaster-for-rcr/
https://www.cfsg.com.au/case-study-demise-rcr-tomlinson/
https://www.copyright link/companies/infrastructure/rcr-tomlinson-insolvent-weeks-before-administration-20200417-p54kqu