Ann: Business and Fundraising Update-CL8.AX, page-30

Brexit uncertainty and its impact on markets would contribute to some distressed selling in speculative stocks such as CL8 as people offload these and head to safety. Those using leverage or margin loans would be more likely to offload such stocks. Hence, times like this are frequently also good chances to buy these stocks at a discount.

Overall I think the company is making good progress, with a few deals here and there that set a benchmark/precedent for others to follow and become scaleable.

With the supply side sorted, they can now focus on ramping up the demand side and thus generate more revenue. The high gross profit margin is also pleasing.

The fundraising issue and uncertainty around its details may also be impacting on the share price in the short-term. But personally, I think this is the one thing that may re-rate this stock upwards. If they get institutional investment support to me that is significant as these guys will not back a company without some conviction about its future prospects. With more capital and funding certainty any immediate concerns about the short-term viability of the company will fall away and they will have a clear runway to invest for further growth and be less constrained by their budget and focussing too much on cost restraint. They need to continue to invest in the product, innovate and market the business harder to drive growth. All of this will only be possible with a medium to long-term funding solution, whatever this may entail.

On that note, do people have any ideas on what sort of fundraising solution they will provide?