If successful, the current capital raising will add 4.1m to the bottom line (see page 8 of the prospectus). http://www.asx.com.au/asxpdf/20130917/pdf/42jf591rw5v1sq.pdf
QFX had 2.2m at the end of the September quarter.
6.3m/0.75m/quarter = 8+ quarters of cash left at the current rate of cash burn.
However, judging from this year they won’t want to leave it to the last minute so there may be another cash raise around this time next year. Conservative targets for this time next year: average income per paying customers up to $16, paying customers up to 120 000. 16 *3 * 120000 = 5.76m revenue per quarter.
Assuming QFX are comfortable with current cash burn that would permit an increase in investing activities to 1.8m/quarter to increase content and support customer acquisition and retention. All going well I anticipate the next cash raising, if required, will be between 3.0 to 4.5 cents, with potential upside to 6 cents. Downside, well we’ve heard that umpteen different times.
QFX Price at posting:
1.2¢ Sentiment: Hold Disclosure: Held
