Ann: Corporate update and equity raising, page-40

This is yet again another brain fart from the incompetent management. The equity rising is mostly for operational needs including $6m for expanding sales and marketing, as well as $4.5m for working capital and $1m for transaction costs. So $11.5m for what should be operational spend and $5m on embedding AI technology and $4m on infrastructure to support deployment. Not sure why they need this if they have $120m in sales revenue and free cash flow in 2H FY24 of $5m+

Yet again showing they can't manage cash and it closes tomorrow after a day to decide.

As for the loan extension it is one year at 12% interest or $1.8m and $450k as upfront fee and $450k exit fee so for the rollover of $15m they are paying $2.7m or an effective rate of 18%

They are really just wasting money.

Love the fact that Vector Capital Management have put a confidential, non-binding, incomplete and indicative offer in. They have seen the equity raising and the fact cash will be used for mainly opex needs, I can't see them going ahead with this. The ceiling is now 25 cents and it can't go that high with 10cents equity raising.

Sugar fix for a bloated and unhealthy company.