DSE 1.72% $3.55 dropsuite limited

Ann: Dropsuite Completes $20 million Capital Raise, page-18

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  1. 717 Posts.
    lightbulb Created with Sketch. 261
    Incorrect. Why would they fundraise before they announce what company they are acquiring. Obviously because it's overvalued right now so they saw an opportunity for less dilution. Or they foresee less growth in the upcoming periods, so best to capital raise now.

    They can use the $20M to do what they want obviously, maybe increase director compensation, who knows?

    It's undeniable there is a massive cap at $0.21 right now. It cannot break through this easily.

    Think about it, why capital raise now, instead of later in 1 year, right before they are actually doing an acquisition, because if they project the company to keep growing and share price to keep appreciating, why not do the capital raise later for less dilution?

    Is it because they suspect the share price to be lower than in a year from now, or they can't maintain growth? Very possible and worth thinking about. The logic doesn't make any sense otherwise. Why does their software even need a $20M acquisition, they can't get growth organically? Acquisitions need to be synergestic, there is nothing synergestic about their software. Just think about it, that's all.
    Last edited by regalinvestor: 19/08/21
 
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