- Digital advertising company engage:BDR (EN1) has frozen its shares until after the weekend as it prepares to raise some fresh capital
- Exactly how much the company plans to raise and where the money will go is not yet known
- At the end of June, engage:BDR had over $40 million in available funding
- However, less than $2 million of this was in the form of cash in the bank — the majority of the funding comes from unused financing facilities
- The company has booked just over $10 million in revenue over 2020 so far
- Shares in engage:BDR last traded for 0.8 cents each yesterday afternoon
Digital advertising company engage:BDR (EN1) has frozen its shares until after the weekend as it prepares to raise some fresh capital.
The company has not yet revealed how much it plans to raise or for what it will use the funds, but details are slated to be announced next week Tuesday.
Interestingly, engage:BDR said it has $38.7 million in unused finance facilities at the end of the June quarter. However, only $1.69 million of this was in the form of cash in the bank — the rest was from unused financing facilities.
Specifically, a major portion of the company's available funding is from a $38 million convertible securities deal with Alto Opportunity Master signed in September 2019.
While engage:BDR went cashflow-positive by a skinny $4000 in the June quarter, the company has still spent $1.16 million more than it has earned over the 2020 calendar year.
This is the same half-yearly period in which the company said it pulled it its greatest-ever revenue since its listing. Over the last six months, engage:BDR booked $9.04 million in revenue, which is an increase of 44 per cent on the same period in 2019.
The company increased this revenue number by just under $1 million over July, telling shareholders earlier this week its revenue position grew to $10.3 million last month.
Given the company's financing facilities and revenue growth, news of the upcoming cap raise may have taken shareholders by surprise. Whether the new funds will be used to get rid of some of the Alto debt, make a purchase, or something else is not yet known, but shareholders have the weekend to speculate.
Shares in engage:BDR last traded yesterday afternoon for 0.8 cents each. The company has $10.11 million market cap.