The company has enough cash to last it to just past the end of the year (at the current burn rate per the recent cash flow report). Its current share price is 1.3c, and participants from the previous (50% under-subscribed) capital raise are down a staggering 74%. It has not, to date, been able to sign a paying customer despite claiming that it has a product with specific features that its competitors do not have. It has botched an acquisition, has restrictions around its placement capacity due to previous errors, has lost its inaugural CEO and has had, to date, not one bit of institutional interest on the register. Its market cap is around $3M whilst most comparable peers are trading with very little revenue and MC's of $50M+. It has essentially spent 6 months and over $1.5M to go nowhere and on every measure it has been a disaster.
Taking all that into account, the company needs to raise capital to survive beyond early next year. It will not generate anywhere near enough revenue to avoid a raising, even if it signs a customer tomorrow. Any raising would likely now occur at around 1c, which would be 300M new shares to raise $3M. Who exactly do you think is going to stump up that amount of cash to invest in a company that has, for all intents and purposes, not achieved a thing? Put another way, on what basis do you think the company will be able to raise $3M on the hope that somehow, miraculously, this company will turn all of that around? Even if it does manage the raising, there will be 300M shares sitting on the register that would be in significant profit at 1.5c whilst most existing shareholders sit out of the money and further diluted. Dreaming of a pump and a raise at 3c is just that – dreaming. Dreams can come true but reality comes true more often.
We’ve both continued to say the same things at 4c, 3c, 2c and now 1.3c and I suspect you'll continue repeating the same things at sub-1c as well. I don’t find it comforting being on the right side of all available evidence but facts are facts and calling my post mindless drivel won't change them. If your claims of buying are true, all the way down, you're sitting on a massive loss on this company hoping that your faith will ultimately be rewarded. Who knows, it might be, but it’s not looking likely right now.
ZYB Price at posting:
1.2¢ Sentiment: None Disclosure: Held
