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- Plastic pallet manufacturer Range International (RAN) has placed its shares in a trading halt ahead of an upcoming capital raise
- The raise coincides with Range’s quarterly financial and activities report, which flagged the prospect of a capital raise to meet imminent cash requirements
- Overall, RAN’s sales revenue was the largest it had been in two years, but still made commentary on how COVID-19 had made 2020 a difficult year for sales
- Looking forward, RAN says it looking towards establishing a rental business
- An announcement regarding the raise is expected on or before January 29
- Prior to the trading halt, Range shares last traded at 2.5 cents each
Plastic pallet manufacturer Range International (RAN) has placed its shares in a trading halt ahead of an upcoming capital raise.
The ASX-lister announced its share would remain in a trading halt until January 29, when a formal confirmation is expected regarding the raise.
Range has not made any indication as to how much it is seeking or how it would utilise the funds, but made mention of a capital raise at the tail end of its December 2020 appendix 4C.
The trading halt coincides with the release of this quarterly report for December 2020, detailing its financial and operational activities for the period.
Range disclosed a cash and equivalents balance of US$490,000 (roughly A$633,000), which based on current spending levels, would see it through just shy of the next two quarters.
Overall, Range reported a sales revenue of US$523,000 (approximately A$676,000) for the quarter, marking its largest revenue quarter in over two years.
In the same vein, Range flagged COVID-19 conditions in Indonesia as a hindrance to the speed in which existing and prospective clients made decisions, making 2020 a “difficult” year for the company in terms of sales.
Looking forward, the company has indicated it will turn its eyes to starting a rental business called EasyPay, which will commence initially with Indonesian and Philippine companies.
RAN’s board says it recognises the negative impact it will have on working capital, but is expected to be more profitable than regular pallet sales and provide more predictable cashflow.
Prior to the trading halt, Range shares last traded at 2.5 cents each.
