In the last release I have focused on these words 'limited by production capacity in place and lack of stock of hand'.
The reality was that the Brisbane factory only got TGA approval on or about the 17th September. There would have been restrictions on what could have been manufactured in this facility during July, August and the first few weeks of September until approval was actually received. When approval was finally received, there would have been this mad rush to get orders filled, no doubt three shifts working around the clock. The overtime and penalty rates paid out would have been substantial. I would imagine that this catch up has continued this quarter as they prepare for the third quarter which is traditionally the real busy quarter.
It makes you wonder how much finished product is currently being shipped around the globe and is still not being treated as revenue until it's received. I have been told shipping from Fremantle is a slow process, allow 45 plus days to the USA. I could not imagine Brisbane to the USA being to much quicker!
Lev has a theory that to really grow sales, you need stock on hand to demonstrate to new customers that you can supply. He is somewhat frustrated but at the same time amused by the fact that the business has been unable to build up a supply of finished products of late. He is determined to rectify this problem. Hence the capital raise and further spend on equipment and raw product.
I fully believe the board are doing the capital raise for the right reasons. If we rely on history, I wouldn't be expecting much of a discount from the market price.
I will need to do my own capital raise around the Christmas table if I wish to join in this time. Best of luck.
ANO Price at posting:
$6.47 Sentiment: Buy Disclosure: Held
