Yes I wasn't expecting this early, but I understand that UOB Malaysia is a big deal and they may need the cash to put on extra resources to get this going.
Coupled with this I don't believe UOB Malaysia is the only bank they will be targeting in Malaysia. With the Central Bank of Malaysia mandate of electronic payments chip and pint payments by 2020, there are many other banks within Malaysia that will be looking for a solution. So from this perspective I can understand the additional cash that will be required to address the opportunities in Malaysia.
Thinking this through imo I am not so concerned with this capital raising as coupled with these opportunities in Asia they are also focusing as well into becoming cash flow positive in FY19 as announced in the investor presentation.
It will be a very big positive if existing shareholders are involved in the capital raising as this will further cement their faith that the company will turn around in the near term, as they have been riding this wave for a very long time....
MNW Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
