Ann: Quarterly Activities Report, page-7

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14/07/20

22:31

Post #: 45866451
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Originally posted by hilly_sandman: ↑

The cash burn is still significantly high ($1M per quarter, $4M per year), which has been unfortunately exacerbated by Covid...

ICQ have been selling the cashflow breakeven talk in previous quarters, however now they are staring down the barrel of yet another capital raising as they only have $2.1M of remaining cash (2 quarters) and then access to a $5M loan. Literally depending on how revenue recovers post covid, ICQ could be in a bad position in 12mnths time...

The risk is a capital raising required within the next 1-2years as they continue to struggle to become cash flow breakeven. Perspective on this, assuming they need to raise $10M at 20c (30% discount) this would result in another 50M shares being issued - big dilution....

In the medium term I can see significant pressure on the share price because of this risk of a capital raise, and the continual negative cashflow...

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the announcement says with expected increases in sales and expenditure reduction initiatives they don't expect to draw down on the $5m loan so shouldn't expect a CR unless for a major initiative or acquisition cash injection.

ICQ Price at posting: 28.5¢ Sentiment: Hold Disclosure: Held
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Ann: Quarterly Activities Report, page-7

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