I think everyone suspects that this Pointerra SPP will have raised very little funds - as the SP since around 21 August has been well below the 12 cents that the institutions & sophs paid in this capital raise (to raise $2.0m).
From a shareholders perspective, clearly 3DP need to start generating higher revenues & cash flows ASAP - as the previous years excellent (100% + pa) growth rates came to an end with the disappointing results in 22/23.
These poor results were largely blamed on project delays (which apparently are now mostly resolved), and when combined with the recent large Entergy contract "pole inspection" win & the stated higher interest from US infrastructure projects, 3DP revenues & cash flows should start to grow again.
However, as previous posted, I don't think the success of this current $1.5m SPP is vitally important for Pointerra.
They should have around $3.5m in the bank at 30 September 2023.
And their total operating cash burn in the poor last year (22/23) was only $2.0m - with their operating cash burn being even less at $1.45m the year before (21/22).
With my glass half full hat on, it might even be better to avoid the dilution from the 12 cent SPP now
And then crank up the revenues & cash flows - before contemplating a future raise if one is required?
Obviously there is less cash in the bank now under this scenario, but it could work in all shareholders favour
3DP Price at posting:
9.2¢ Sentiment: Buy Disclosure: Held
