We'll see soon.There was about $1.5m in the bank so the end...

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nooneimportant

370 Posts.

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30/09/23

21:12

Post #: 70115747
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Originally posted by Brett M H: ↑

@ noonster - g'day!!

I think everyone suspects that this Pointerra SPP will have raised very little funds - as the SP since around 21 August has been well below the 12 cents that the institutions & sophs paid in this capital raise (to raise $2.0m).

From a shareholders perspective, clearly 3DP need to start generating higher revenues & cash flows ASAP - as the previous years excellent (100% + pa) growth rates came to an end with the disappointing results in 22/23.

These poor results were largely blamed on project delays (which apparently are now mostly resolved), and when combined with the recent large Entergy contract "pole inspection" win & the stated higher interest from US infrastructure projects, 3DP revenues & cash flows should start to grow again.

However, as previous posted, I don't think the success of this current $1.5m SPP is vitally important for Pointerra.

They should have around $3.5m in the bank at 30 September 2023.

And their total operating cash burn in the poor last year (22/23) was only $2.0m - with their operating cash burn being even less at $1.45m the year before (21/22).

With my glass half full hat on, it might even be better to avoid the dilution from the 12 cent SPP now

And then crank up the revenues & cash flows - before contemplating a future raise if one is required?

Obviously there is less cash in the bank now under this scenario, but it could work in all shareholders favour

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We'll see soon.

There was about $1.5m in the bank so the end of the year. They had $2.7m in receivables, and apparently collected a bunch of July, but there was also $2.6m in payables. The burn rate is about $1m/month so any dip in receipts puts them in a really bad spot.

Personally I think they should have raised more, but (a) maybe they couldn't, and (b) if revenue doesn't pick up soon then maybe this business just isn't going to work in its current guise.

I'll agree that there should be $3.5m in the bank, but expect costs to grow again this year, as they inevitably do.

3DP Price at posting: 8.9¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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