SO they are increasing shares on issue by a further 50%. A crazy dilution, I thought the most a company could do is 10%
In the Annual Report they alluded that Argosy would underwrite this capital raising and if that's true and in the absence of any other shareholders participating (you really cant imagine anyone else would throw good money after bad) Argosy will end not much shy of owning a majority stake. Something smells a bit fishy about all this to me.
In the announcement they talk about hitting revenue targets, my query is when they are going to be cash flow positive, because at the run rate they are at they are burning $12m a year in overheads (mostly salaries to underperforming execs).
It would also be interesting to see a revenue split between mystrata and the urbanise products. Mystrata is a steady business propping up a dog.
They need to indicate how the right sizing of the cost base has gone. What $$ value of costs have been stripped out of the business?
UBN Price at posting:
4.7¢ Sentiment: Sell Disclosure: Not Held
