Hey Gustaf. I echo all your concerns above, as I'm sure most holders do..
Regarding capital raisings, share issues, and deferred revenue.. I've had a look at many asx hy reports these past few days & have noticed a lot of deferred revenue & share based remuneration (with statements saying - to avoid more/larger capital raisings). It's all very common in the tech space (along with capital raisings). Also, losses everywhere. Its so hard for tech companies to become profitable in the first years of their life.
With respect to BIG, they didn't go down the capital raising route as much as other stocks have. Instead they did a deal with FC. Yes, they incorrectly stated cash receipts, no doubt about that. However, they have built upon their business & got it to a point where they may actually be able to pull off their vision.
Now is the time for a capital raising, imo; now that there is greater clarity about how the business works. Sure, it would have been nice if they could do it before all this information came out (and at a higher price), but then it wouldn't have been a good look if instos jumped in on false/misleading information. They really just need to raise enough to help them wean off the FC financing now; maybe 10-20m?
That doesn't mean they need to let go of FC all together though. Whatever deal they have in place with FC seems to be helping with the onboarding process. Maybe they need to have a better blend of FC/non FC offers. Or maybe they can upsell the Finstro platform & actually earn a commission at some stage.
Anyway, I still think this has legs, but we'll no doubt have to cop a haircut on the share price if/when this trades again.
BIG Price at posting:
$2.22 Sentiment: Hold Disclosure: Held
