Ann: Trading Halt, page-16

Crowd has long known their conversion cycle of sales to cash is a long one (some telco's paying 90-120 days). This was raised during the Track acquisition on an investor call.

If marketing costs are payable upfront as is standard for online channels this means there is a serious gap between cash outflows and inflows. Fortunately for Crowd they generate very health margins which buys them some buffer, but inevitably in any business where this type of disconnect between cash outflows and inflows exists, growth always put a strain on the business.

Should the above be the case (and I'm not saying it is), their growth in message volumes and customers could in fact be their achilles heel, and hence the need for a further capital injection to fund the expanding working capital balance.

Unfortunate timing as the company really seemed to be picking up some positive momentum (and I'm surprised this came pre-quarterly, given it should be a good one). Hope the terms are good for you guys