Disappointing that it wasn't for something tangible that grows the business like an acquisition.
HMI are still talking about these AI products as something with 'potential' rather than something that is actually generating revenue. Until they do I find it hard to get excited by them.
Good to see directors putting in for 25% of the placement, at least that gives some comfort that they actually do believe in the AI tools.
I question this 'for general working capital to market these new solutions to Hiremii clients.'
They have a $2m loan facility for working capital, how much money is going to be required to get these AI tools to start generating revenue? The last thing we need is for HMI to put loads of cash into AI marketing & then not generate any revenue of significance just when they've got to a cash generative position.
If HMI doesn’t make some significant progress by the end of FY24 with their AI tools will they start to reassess whether they are commercially viable? The CV Videofy tool for example I can't see anyone using that to apply for a role in a traditional occupation such Accounting or Law, marketing & IT maybe. So I'd question how widely that will be taken up.
What HMI needs is to get IMO s a licence agreement signed with a significant multi national for one of their other AI tools to show that there is a market for all the money invested.
HMI Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
