i bought into this stock recently on the basis that they have a bright future with strong growth potential and revenue momentum.
i see this capital raising as positive in the context of their rapid growth opportunities and their currently limited cash flow to fund the expansion of service support and sales teams.
they are transitioning from a long product development phase to a marketing and industry implementation phase which requires capex to capitalise on the opportunities in usa, europe and local markets.
i trust the management team here. i think they will use the funds well and see this as a better mechanism than debt raising. remember they are diluting their own equity too.
this company will undoubtedly be profitable in fy 2016-2017 in my opinion, but thats just my opinion and of course risk always exists.
i agree with the lrecious poster who said if sp drops to 9c due to negative sentiment then this is an opportunity to accumulate on market.
EVS Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
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