The Market Herald - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Massive 3D data specialist Pointerra (3DP) has frozen its shares today as it gets ready to launch a fresh capital raising plan this week
  • While details of the plan and where the new funds are headed have not yet been revealed, Pointerra revealed the capital raise as it requested a two-day trading halt this morning
  • Interestingly, the company said in March it was not expecting to need any extra cash for the foreseeable future
  • Shareholders have until Wednesday to speculate before the company reveals what changed its mind
  • Pointerra shares last closed worth 5.4 cents each

Massive 3D data specialist Pointerra (3DP) has frozen its shares today as it gets ready to launch a fresh capital raising plan this week.

The company requested a trading halt today, slated to last until Wednesday, July 15, ahead of the capital raise. Exactly where the new funds will be headed is yet to be revealed.

Pointerra operates in three key areas of business: Data as a Service (DaaS), Analytics as a Service (AaaS), and Data Processing as a Service (DPaaS). Customers can use Pointerra’s tech to help manage, visualise, and analyse massive 3D point clouds and datasets.

Pointerra said in its latest quarterly report that over the March quarter, COVID-19 had had a minimal impact on business operations so far given the company’s ability to work from home.

Importantly, the company said it was expecting a cashflow-positive fourth quarter of 2020, so long as its growth profile continued. Just a month before this, Pointerra said its current cash position and expected cash receipts from customers in upcoming months “should remove the requirement for any additional external capital for the foreseeable future.”

As such, shareholders might be taken by surprise by the news of today’s capital raise. At the end of March, Pointerra had roughly $2.2 million in the bank after burning nearly $300,000 over the quarter — meaning it had enough money to track along nicely for over seven more financial quarters at that level of cash burn.

Thus, the news of the new capital raise might be throwing doubt on the expected cashflow positivity for the next quarter as the coronavirus has continued to spread and wreak havoc in businesses around the world.

Nevertheless, investors have the next two days to speculate before the details of the raise and where the funds are going are revealed.

Pointerra shares last closed for 5.4 cents each in a $33.11 million market cap.

3DP by the numbers
More From The Market Herald
Unith (ASX:UNT) - CEO, Idan Schmorak

Unith (ASX:UNT) to tap investors for fresh funds

Artificial intelligence (AI) specialist Unith (ASX:UNT) has called a trading halt in order to tap investors…
The Market Herald Video

ASX trade starts Monday: Battery Age Minerals (ASX:BM8) targets rapid lithium exploration in Canada

Battery Age Minerals is due to start trading on the ASX on Monday, under the ticker…