With all due respect, I think this is a very flawed analogy, @Gman70. There are many companies on the ASX that remind me of a carrot and donkey with promises from management that never eventuate, but HLF is not one of them. The reality is that Halo Foods Co has shown excellent execution on growth (and improving EBITDA margins) across the past 3 years:
FY19 revenue: $2.5m, FY19 EBITDA margin: -115%
FY20 revenue: $22.5m, FY20 EBITDA margin: -21%
FY21 revenue: $50.7m, FY21 EBITDA margin: -11%
The truth is that management is delivering (on everything bar the share price), having grown this business dramatically since its IPO in 2018 when it was running at merely a $1m revenue run-rate. In terms of your concerns around working capital and a capital raise, I'm not worried at all because as of 30 September 2021, HLF had a combined cash balance of $3.7m, drew down $2.1m on the loan facilities* and has undrawn debt facilities of $6.3m. Moreover, capital expenditure payments are forecast to materially reduce through the balance of the financial year and the final grant payment of $120k is expected in Q3 FY22.
* ''Keytone/Halo secured a competitive trade debtor facility with Moneytech to support the working capital needs and further strategic growth initiatives of the Australian business. The increased debt facilities have now been drawn upon and will be deployed to focus on organic growth initiatives, new contract wins and the growing sales pipeline'' (ASX Announcement, September 4C 2021)
''The Donkey (shareholders) can't take much more'' — I'm sorry to hear that my friend, but that helps validate my recent investment decision to buy more: “When you sell in desperation, you always sell cheap.” — Peter Lynch
(20min delay)