I am new to Hot Copper and have been browsing the various chats.
On this company, I have done some preliminary reading and my conclusions are:
Company is bleeding approx $10m Qtr, 44% related to staff costs. They have around 8m in cash and seem to have just raised more money through issuance of additional shares.
This should be enough to see them through to end of Oct.
They have drawn their credit facility, so appear to rely on share sales to fund on going operations. Product sales for the last Qtr negligible.
Back in May they announced a big supply contract to an unamed party, everything sign sealed and delivered, except signatures on the the documents. A month later they posted an update still no signatures and from what I can see nothing has changed.
I would be very cautious.
Share price falling for two reasons in my mind. The first, is non delivery of the promised supply agreement and second, is the continued share issuance. This dilution will sit on the stock and if a deal is ever struck, the share appreciation should suffer as more share are around.
If nothing is done in the next month expect more ATM share sales to keep the operating cash levels up so staff can be paid.
UNS Price at posting:
54.0¢ Sentiment: None Disclosure: Not Held
