Usually, there are three reasons for a company undertaking a...

Usually, there are three reasons for a company undertaking a capital raise:

1. To fund an acquisition (Not in JAN's case though, or they would have said so in the announcement);
2. 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);
3. 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.