Originally Posted by
bobbells
Thanks for the tip re DYOR. I'd love to, but meaningful information is hard to come by, and I don't consider the unquestioning acceptance (and then parroting) of company press releases as 'research'. As an example the latest Investor 'Update', amongst all the gloss and dross, contained only one critical and well-hidden line 'we have not achieved the sales we planned ...'. No numbers, no further comment. We await the soon to be released year ends with interest,
If they acknowledge shareholder concerns about the number of shares on issue, rather than address the situation why to they issue hundreds of millions more (to themselves)?
Purpose built factory on target? By own admission it is two year's late and they have used it as an excuse in past releases for missing targets, although how that works I don't know. They can't have their cake and eat it.
Regarding the latest round of capital raising, hardly something to write home about. Returning to the point that the existing structure makes the raising of further funds fraught, to raise a paltry $2.5m (yes they got $4m) they halved the capital value of the company, taking it from $70m to $35m. Immediate major book loss and dilution for shareholders.
Demand for product doesn't outstrip supply in the market- that's simply parroting the company line and reflective of the company's own shortcomings. It appears they haven't had the wherewithal to purchase raw materials - hence the admittance that the recent capital raising will be directed to 'operating costs'. The reduction in 'order book' from one press release to another - by 50% - is suggestive of customers going elsewhere.
DYOR leaves one coming up empty and feeling empty.