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RotoGro (ASX:RGI) - CEO, Adam Clode - The Market Herald
CEO, Adam Clode
Source: The Market Herald
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  • Roto-Gro International (RGI) has ended the week in a trading halt as it prepares to conduct a capital raise
  • The company will remain in the halt until the earlier of November 24 or when an announcement is released to the market
  • In the September quarter, Roto-Gro burnt through $357,000 with the majority going towards design and innovation, and administration and corporate costs
  • As of September 30, the company had only $88,000 left in the bank
  • Coupled with its September quarter outflows, it means the business only has enough to support operations for a quarter of a quarter
  • However, this didn't phase Roto-Gro as the company secured a $1.25 million convertible note – all of which has now been received
  • Shares in RGI last traded for 4 cents on November 18

Roto-Gro International (RGI) has ended the week in a trading halt as it prepares to conduct a capital raise.

The company will remain in the halt until November 24 or when an announcement is released to the market.

In the September quarter, Roto-Gro burnt through $357,000, with the majority going towards design and innovation, as well as administration and corporate costs.

As of September 30, the company had only $88,000 left in the bank. Coupled with its cash outflows, RGI only has enough capital to support operations for a quarter of a quarter if spending levels remain the same.

However, this doesn't phase Roto-Gro, as the company recently secured a $1.25 million convertible note to boost its cash reserves.

Roto-Gro last tapped investors for cash in December 2019 when it undertook a $2.3 million placement.

More than 18.65 million fully-paid ordinary shares were issued to institutional and sophisticated investors at 12.5 cents, together with a one-for-two attaching option exercisable at 20 cents and expiry two years from issue.

Roto-Gro used the money to develop its Health Canada cultivation licence and for working capital.

At this point, Roto-Gro is yet to disclose how much it is raising or what it will use the funds for.

Shares in RGI last traded for 4 cents on November 18.

RGI by the numbers
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