I am not being negative. The company needs to satisfy investors of its viability before it can reverse the current death spiral.
Without a set and clear viable cash pathway for the next 12 months no amount of sales with bring the company out of the trading trajectory.
Copied from the last quarterly January 2023.
Bank balance of $616,000 of cash + $449,000 to be remitted from the December capital raise.
Total = $1,065,000
Previous quarter operational cash burn was $1,050,000.
If we apply the above to Jan - Feb 23 quarter FIJ will have about ~$15,000 left in the bank.
This means a cap raise could happen any moment. It could be likely any day or week.
This is like groundhog day for long term holders over the past 12 - 18 months.
The next capital raise could be exceedingly harder to pull off as there have been 5 in the past 12 months and the slippery slope of current market sentiment.
Past raises for FIJ are historically discounted 25 - 30% plus free options. The bog of shares at the 1 - 1.5cent level is drowning.
FIJ will need at least $1mill to stay afloat for another quarter. Plus another similar amount in the near future for inventory build to fund through any future uplift in sales from CJ.
The problem is that FIJ need a run way of 12 months cash. Another small raise will mean more of the same and further dilution in another 3 months.
In my opinion the shares on issue will double in the next 3 and 6 months. I would almost bet the calmer co rebranding also comes with a share consolidation.
