The real story here is where the co. is going LT. Id previously been given guidance on cash reqs and was veru surprised to see a CR. In terms of contact with mgmt this was never flagged to me.
The cash being raised is well above orig. reqs, i.e more than the 14M flagged earlier. The support by the investment community is underpinned by the results. LT the company is in a strong position and they want to build volume now. For a reason I still dont quite understand there is a sense of urgency. Would have much preferred an organic growth strategy at this time.
Anyway Im expecting some big sales and profit numbers FY18. This has been communicated and its why the raising has such strong support. This is obv no small CR. In terms of mkt dynamics; the farmgate prices have been skyrocketing as theres simply not enough supply. This is forecast to continue and I can understand the need to produce the vols req to meet this demand. Getting in early and establishing the product as the leader is the clear goal here. I think competition will surface but CSS is aiming to combat the inevitable by building the brand.
CSS Price at posting:
6.7¢ Sentiment: Buy Disclosure: Held
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