Nick HargraveA concerning development with the company not being able to raise equity through a brokered placing. The company managed its resources so well for a long time but let the purse strings open for just one quarter earlier this year leaving it exposed to one of the most difficult fundraising environments on record just before it reached breakeven. The operations continue to deliver while being streamlined and both the B2C and B2B products should each be worth more than the current market cap, but with the “significant interest” shown in these operations it now looks likely that one or both ‘divisions’ will be sold. Given the small exposure in the model portfolio with available cash for new and add-on positions, we will retain the option on the value for now as the likely outcomes become clearer, albeit there is clearly now a much greater risk of the downside scenario.
