Ann: Appendix 4C and FY 2017 Commentary, page-14

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Chillicop

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31/07/17

17:42

Post #: 26193165
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Originally posted by chris115 ↑

The company is aiming to be cash flow positive as soon as practical during 2018 FY. Forecast cash outflow for next quarter is $1.4 million. With increasing sales and cash receipts the net outflow should be significantly lower as we get closer to the end of 2018 FY and hopefully becomes a net cash inflow.

The working capital facility ($2M) hasn't been drawn upon yet and is repayable by 31 July 2018. With the timing of the repayment on the working capital facility and the aim of being cash flow positive by end of June 2018 I'm of the opinion that they can push through without a CR but it will be tight. This is solely in relation to getting to a cash flow positive point with current products (Mute & Turbine) and does not take into consideration capital requirements for the development of new products in the future.

It also depends on whether the significant increase in revenues and cash receipts is seen in the front end or the back end of 2018 FY. But any CR will surely be done at a higher valuation to the current one if it were to occur.

Time will tell.

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I get that the company could perhaps be positive in cashflow (maybe) if all works out ok, but wouldn't you think they would like to grow the business quickly e.g. advertising, employ more business development people?

RNO Price at posting: 23.5¢ Sentiment: Buy Disclosure: Held
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