Oliver's, ASX financial news posted yesterday 30 April in my opinion was a shocker for all investors including my Mum & Dad investors who so wanted Oliver's to reward them for putting their hard earned money into this company. Their money put in @.20 cents & .11 cents is now trading at approximately 2.8 cents.
Oliver's ASX financial news states from 1 January 19 to 31 March 2019, this last quarter income was $8.330 million and expenditure was $10.171 million a loss of $1.841 million, plus Oliver's went on to say another $137,000 was spent on property, plant & equipment, for a total loss of $1.978 million.
Oliver's now say they only have $1.493 million dollars left in the Bank--------but wait there is more!!!! Oliver's ASX financial news says they also owe $1.000 facility drawn down. So, to my calculations that means if they paid back the 1 million dollars they owe, they would only have $493,000 left in the Bank. Have I got this right???
April has been and gone and what losses if any occurred in April?? If so how much???
As you know Oliver's raised approximately $22.8 Million dollars and it appears it has only $1.493 or $0.493 million dollars left depending on how you wish to calculate it from Oliver's ASX posting.
I personally would be very, very concerned indeed if I was an investor or shareholder in Oliver's.
I have tried to think should they need to raise some more capital how could they achieve this?
I would think going to shareholders would be very difficult, particularly with the share price trading at under 3 cents and I would imagine shareholders would not be impressed with progress of the company to date, would they? Help me please understand what i can't see?
Private equity funders and or others would require a fair bit of due diligence and ask some hard questions, these may include:
Talking to Mark Richardson former Chairman on why he resigned? Talking to Greg Madigan former C.E.O. on why he resigned? Talking to John Diddams & Peter Rodwell former independent Directors on why they resigned? Talking to the former Chief Financial officer on why he/she resigned?, sorry I forget their name. Talking to Katherine Hatzis former director and then Chairperson on why she resigned?
They may ask Jason Gunn why he purchased vacant premises and put an Oliver's in and sold it at an inflated price on a long lease to an investor? The question they may ask, may be, would that site which was vacant not be an indication that the site was not a good spot to sell food from?. They may point to Dubbo and say as an example what about Dubbo? What would Jason say??
I point this out as any investor will ask hard questions.
I must say I was puzzled and astounded at Sorrynotoz recent posting suggesting that Oliver's share price could jump on good news to .30 cents then to .48 cents and then up to .75 cents. The share price seemed to jump from 2.9 cents to 3.1 cents on this astounding news. At approximately 250 million shares @ .75 cents that would lift the market value of the company to approximately $187.5 million dollars. Now sorry I do not believe in tooth fairies nor indeed Father Christmas, do you??
Can you see why I am confused?
If I was a shareholder I would want some strong reassurance "right now" from the Directors that $1.493 million dollars left in the Bank was going to last them going forward or what plans did they have to raise more capital if it was required, but no reassurance came in the Oliver's ASX posting on the 30 April 19. I would also want a comment on the $1.0 million dollars drawn down on their facility.
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