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- Telecommunications provider Flexiroam (FRX) has entered a trading halt ahead of a capital raise
- So far, it’s unclear how much will be raised, or what the funds will be used for, but shareholders will only have to wait until Friday, November 13 to find out
- The company’s last raise wasn’t too long ago — having raised just over $1 million through a rights issue in August
- The raise allowed Flexiroam to launch its namesake connectivity solutions platform
- To save costs, the tech stock reduced operational spending by 22 per cent in the September quarter and ended the period with almost $1.2 million in the bank
- Company shares last traded for 2.9 cents on Tuesday, November 10
Flexiroam (FRX) has entered a trading halt ahead of a proposed capital raise.
The company will remain in the trading halt until trading commences on Friday, November 13.
So far, it’s unclear how much will be raised or what the funding will be put towards.
Flexiroam is an Australian-based telecommunications company that offers competitive mobile data roaming rates to over 200 countries and territories.
In August, Flexiroam completed a non-renounceable rights issue that raised over $1 million. The money was used to accelerate its internet of things (IOT) development and commercialisation efforts.
Specifically, Flexiroam launched Flexiroam Solutions, an IOT connectivity solutions platform. This platform leverages its cellular connectivity tech and allows customers to tap into network switching technology for enhanced coverage.
In the September quarter, cash receipts came to $330,134, which is 28 per cent lower than the $456,910 received in the June quarter.
Flexiroam also spent around $524,000 on operating activities in the last quarter, which is a 22 per cent reduction from the $675,244 spent in the June quarter.
As of September 30, Flexiroam had nearly $1.2 million in the bank compared to the $674,000 it started that quarter with.
While COVID-19 has caused the travel industry to significantly decline, Flexiroam is counting on this to improve and is prepared to pursue strategic opportunities that may arise.
The company is also hoping to expand its namesake solutions platform by initially developing it in Asia to make it a recurring revenue stream.
Company shares last traded for 2.9 cents on Tuesday, November 10.
