We sold 80% on the capital raising pump and made a small loss.
Not impressed that they didn't extend to offer to long-term shareholders and gave cheapies to mates. Also not impressed on the lack of details around the AoM transaction. At the time, they even didn't mention that they needed to make another $2.5M+ in payments (tranche 2 &3). From our understanding (tell us if we're wrong), the company only announced the full transaction details in note 20 of the FY21 Annual report.
Looking at the financials, AD1 lost $1M in operating cash flow. Staff/admin costs jumped $500k qoq and product manufacturing costs jumped $700k.
AD1 also drew down $1.53M in debt...
AD1's net cash position is ~$1.5M now (~1M cash for Sept 30+ 2M raising - 1.53M debt), with $1.2M payment due to AoM soon (tranche 2). So they have a $300k net cash position, really.
They burnt $1M operating cash last quarter and we wouldn't be surprised if they drew down the last $1M debt amount this quarter, unless receipts from customers increases rapidly and spend decreases as well.
Not looking good...
Next 4C will be interesting.
To your first million, -Trading For MIllions
AD1 Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
(20min delay)