Ann: Investor Presentation Notice, page-8

"It does seem they are stuck between a rock & a hard place; at double this share price, I suspect the board would raise $1m and then accelerate growth, but at this valuation and the market asking for positive cashflow that they have to balance growth & expansion with cash coming in the door.....all the while competition grows and other solutions gain traction. Ah well, the dilemmas of a micro-cap business"

If the latent demand that management presentations indicate is real, then being under-capitalised is resulting in an opportunity cost.

They should just raise the capital and be done with it.

The market knows its needed; they know the market knows, and the market knows that they know, etc....

But they'll need more than just $1m, I think.

Funding working capital for aggressive growth doesn't come cheap at the best of times; in times like today, it's even more capital hungry.

For easy math, assume an exercise that seeks to raise $2.0m (which I think is the bare minimum needed):

Look at the share register's capital providing potential, relative to the size of the company:

Very granular shareholder base.... there are 930 shareholders (@ Annual Report publication date, August 2021) with the largest shareholder representing less than 4%.

They received subscriptions for almost $1m in the SPP in 2020.
And that was in the middle of Covid
Which was a full 2 years ago.

And the company has advanced in its corporate development since then.

So they could today easily raise at least $0.5m in a placement today, along with $1.0m for shareholders via an SPP [*], and probably closer to $1.5m, which would mean the dilution for small shareholders participating even partly in the SPP would be limited.

And management would have $2.0m (or $1.8m, after fees) at its disposal.

And the company would be free of the capital limitations that is constraining its growth and the stock would surely re-rate as a result.

It's not a complicated exercise.


[*] I know a handful of HNWs who would put their hands up for the full $0.5m, and then some.

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