"Having spoken to management recently (and you probably have,...

"Having spoken to management recently (and you probably have, too), they're quite confident they can meet growth requirements of the business without raising. Given insider ownership and the quality of the board, I tend to side with them.With that said, there is reasonable chance of raising - it's not my base case though."


I actually haven't spoken to them lately but when I do, funding will be the first item of the agenda. And on that note, what I would want to know is why they don't look to establish a modest debt facility to provide them the flexibility to see them through.

Maybe the debt capital aficionados can chime in and correct me, but given IME's business model and the stability in the demand for its products and services - which result in relatively stable and predictable cash flows - I would have thought that a $1.5m, or even a $2.0m, working capital facility would be do-able without costing the earth.

ARR of $20m pa today, growing ~20%pa, to me represents more than sufficient a capital inflow base off which to service the interest and fees on $2.0m of borrowings.

It will certainly have the effect of removing the perceptions that currently exist in the market about the stock being pregnant a capital raising.

Thoughts?

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