Usually, there are three reasons for a company undertaking a capital raise:
- To fund an acquisition (Not in JAN's case though, or they would have said so in the announcement);
- To strengthen a balance sheet (Also not in JAN's case, as they had $10M in cash at end H1 FY21, and growing positive cash flows from operations);
- To accelerate investment (capital or operational) in growth with ROIC well above the cost of capital.
IMO it is 3. that applies for this capital raising by JAN. This is a very good sign, as it means that growth should accelerate and margins should expand (due to the higher margins on new revenue). As an investor, I believe that JAN can achieve a much higher rate of return on new capital invested than I can.
I think they must be ramping up to make big inroads into the provision of PISA tests in Australia, USA and UK, among probably a whole host of other initiatives.
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Open | High | Low | Value | Volume |
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1 | 17870 | 19.5¢ |
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No. | Vol. | Price($) |
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2 | 7850 | 0.190 |
1 | 20000 | 0.185 |
4 | 80576 | 0.180 |
1 | 11428 | 0.175 |
Price($) | Vol. | No. |
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0.205 | 2061 | 1 |
0.215 | 6091 | 1 |
0.220 | 12738 | 5 |
0.225 | 115850 | 3 |
0.230 | 29000 | 2 |
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