Has BRN shareholder value increased?
I’ve been looking back and asking myself a simple question. Has shareholder value actually increased?
For all the talk of progress, partnerships, and potential, the share price today is still sitting at 2015 ASX relisting levels, and additionally we’ve seen significant dilution along the way.
Yes, the technology has progressed, the 'ecosystem' looks good, and the company has been promoting itself as world leading for years. But we still haven’t seen a clear path to sustainable revenue, just ongoing capital raisings to keep the lights on, $20–$25 million annual losses, and no new IP deals in years.
What’s more, the company seems to avoid announcing real developments to the ASX. We’ve heard exciting 'news' about, Chelpis Mirle relationship, Onsor, RTX, and the Aquimeria ocean drone all mentioned in presentations and media, yet never disclosed through proper ASX channels as material news.
And very quietly, the company has even added a list of supposed customers, Mercedes-Benz, NASA, Onsor and others to its website under the heading “Customers,” without a single ASX announcement confirming any of them as such.
All the while, the company continues to lean heavily on its standing arrangement with LDA Capital to raise cash by effectively selling more shares at depressed prices and further diluting existing holders, with no end in sight
We also have a CEO and Chairman who keep saying for years they’ve never been more confident, and that a big deal isn’t far away. But yet are never accountable for the lack of real commercial progress.
At what point do we have to ask whether all this 'progress' has actually translated into value for shareholders?
In my view, shareholder value hasn’t been protected or increased, it’s actually been eroded, and continues to be.
Because if this is what 'progress' looks like, maybe it’s time to ask whether management even sees shareholder value as their priority, and what success actually looks like.
I’d be interested to hear how others see it:
Do you feel shareholder value has increased?
My opinion dyor
Chart source, commsec
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