FWIW … see also:...

FWIW …

see also: https://www.reuters.com/markets/dea...ls-selling-part-or-whole-business-2023-11-21/

https://www.afr. com/technology/appen-hangs-up-the-for-sale-sign-raises-30m-20231121-p5elod

Appen hangs out the for-sale sign, raises $30m
Tess BennettTechnology reporter
Nov 21, 2023 – 4.12pm


The board of Appen is considering selling the troubled data services business after a 30 per cent drop in revenue, triggering more cost-cutting and a $30 million equity raising.

Shares in Appen were placed in a trading halt on Tuesday as it announced it would raise $30 million from investors to fund working capital, just six months after it tapped the market for $60 million for its turnaround program.
While there is no firm offer on the table, the board said it would engage with potential counterparties should a transaction be proposed that would be in shareholders’ best interests.

Appen shares closed on Monday at 95¢, down almost 60 per cent for the year.

During the technology boom in 2021, Appen shares traded at $42, giving the company a market capitalisation of about $5 billion. But its revenue was highly concentrated among a handful of big tech customers that have dramatically reduced how much they spend on Appen’s services.

New chief executive

In January, the company brought in a new chief executive, Armughan Ahmad, who has attempted to diversify its revenue and return Appen to profitability.


For the 10 months to October 31, revenue had dropped almost 30 per cent compared to the previous corresponding period to $US223 million.

During the period Appen’s underlying loss before interest, tax, depreciation and amortisation was $US23.8 million, compared to underlying earnings of $US9.9 million.
Appen’s cash balance was $US20.5 million as at October 31.

“We are taking action on the items that are within our control and, notably, we have taken steps to remove more cost than previously announced,” Mr Ahmad said.
“We remain committed to returning to cashflow profitability, notwithstanding the weaker revenue environment. The equity raising is necessary to support the company to achieve this in the current environment.”

The equity raising was composed of a 1 for 3.65 pro rata accelerated non-renounceable entitlement offer to existing eligible shareholders to raise $23.6 million and an institutional placement to raise $6.4 million.
At a price of 55¢ a share, the equity raising represents a 42.1 per cent discount to Appen’s last closing price of 95¢.