2022 BRN Discussion, page-9037

From the Financial Review.



"What do you do if you’re a small listed company with big ambitions to finance but only small investors backing your vision? One solution is to call Los Angeles investment firm LDA Capital.

No matter how small, speculative or even tarnished a prospect might be, LDA Capital appears willing to provide a healthily sized equity financing package that can be tapped in all market conditions.

...

While it invests extensively around the world in public and private companies, LDA has found a happy hunting ground at the speculative end of the Australian sharemarket.

It has been involved in financing some of the ASX’s most divisive companies including Brainchip, Skin Element and GetSwift – which, having defected to Canada, has this week filed for administration.

LDA Capital’s financing model is intriguing and, while it does appear well suited to speculative growth companies that need capital but lack institutional support, it’s not without risks.

...

It’s an arrangement that appears well suited to small companies that have drummed up solid retail interest through penny stock websites and sharemarket forums, yet haven’t been embraced by the big end of town.

...

These arrangements allow small companies to raise new capital on the back of retail enthusiasm, but they are not without risks".