Big fan of this company, huge respect for the founders who I...

Big fan of this company, huge respect for the founders who I hear are real visionaries and a friend of mine who's done some free lancing for them in their past says the culture of the workplace is superb!

I am however, very reserved about investing in the company right now while the company is trying to scale up and to be honest a little perplexed by their capital raising strategies.

For most start ups low on capital a capital raising will usually be followed by a decent increase in share price, but Zulu's has been received met with weakness and when you look to see that they raised only $2.6 million whilst making a net operating cash loss of $3.3m in the last quarter alone - you understand why.

The logic behind that move escapes me as the only entity benefiting is Fosters collecting the placement fees.

There is now undoubtedly another raising around the corner, at what price? If they can't raise more than $2.6m at 10c then what does that mean? Until this is resolved I can't see the company's share price moving along too far, even though the company seems to be making big strides, admittedly at a significant cash burn rate!

Next quarterly should see a handsome increase in cash receipts but looking at where GA expenses sit they have a long way to go to breaking even.... something like 1,000% away!!