Given that the company is unprepared to tell shareholders anything meaningful about its busines performance we can only speculate whether the company needs more cash to survive.
The 200 million odd shares it issued at 1 cent raised A$2m. It spent nearly 200k in underwriting fees. Then there is legal fees on the placement, the rights issue, the Take Over panel submissions and responses, the tendering of KTM's 75m shares it was forced to redistribute to real shareholders - how much of the $2m is left?.
Furthermore, rumours abound that DDT head office has ongoing issues with former staff (more legal fees) and has been sacking people (more outgoings with departure payments). Again - how much of the $2m is left?.
1.8 cents closing price - what will they price the next equity offering at?.
Is the current Chairman up to the job?. He's turned a promising company into a basket case. I'd like to bet that he won't be around by the time of the November AGM as it would be a very unenjoyable experience facing an angry mob of shareholders dissatisfied with his performance and seeking answers to legimitate questions of how the company got into this position.
DDT Price at posting:
1.8¢ Sentiment: None Disclosure: Held
