@Micdee, this is the second time you mentioned a cap raise. Not sure why!!
On the 5th of May Buddy announced this
ASX MARKET RELEASE Buddy Enters Into Equity Financing Agreement SUMMARY ● Buddy has entered into a share purchase agreement to provide financing by way of a tranched equity-backed finance facility over a period of 24 months ● The facility will provide the Company with A$12.5 million of working capital funding, and will sit alongside the Company’s existing trade and inventory financing facilities, which will continue to be used to fund manufacturing and supply growth ● The financing provides Buddy with the necessary capital to emerge from the Coronavirus pandemic in a strong position, while providing access to significant growth capital should the business have such a need during this period.
On top of that the quarterly, just out, states they have $2.5m in cash and with the $3.8m and $1.3m R&D due to both fall in July, plus the start of sales of the $10 light, down light and switch, one would expect the next quarter to be a positive EBITDA and for the cash position to improve. That takes us into the finally quarter of the year, which, based on how things are going now is shaping up to be at least as large as the previous 3 quarters combined. Plus, with the financing fixed, the $14m orders from last year will not have to be rejected.
IMHO, a cap raise in mid 2021 will be required to exponentially grow the business and lets hope that the price is above 10c by that stage. Following in the footsteps of Afterpay, who raised at $4, $17, $27 and $66. ($1.1B on the last one )
DYOR.
BUD Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
