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- Broo (BEE) shares have entered a new week in a trading halt as the company gears up to raise some extra capital
- Securities will remain locked up until Wednesday, August 26, unless the brewing company opts to release the capital raise information before then
- At this stage, it’s unclear how much the ASX-lister intends to raise or what it will put the funding towards
- Earlier this month, the brewer inked a production agreement with CUB, a commercial beer supplier
- And in its latest financial update, the brewer went cashflow-negative by $137,000, despite reporting $420,000 in customer receipts over the June quarter
- However, Broo had just $76,000 in the bank on June 30 — leaving it with only half a quarter of funding left if spending levels stayed the same
- Broo shares last traded for 2.4 cents each on August 21
Broo (BEE) shares have entered a new week in a trading halt as the company gears up to raise some extra capital.
Securities will remain locked up until Wednesday, August 26, unless the brewing company opts to release the capital raise information before then.
At this stage, it’s unclear how much the ASX-lister intends to raise or what it will put the funding towards.
Earlier this month, the brewer inked a production agreement with CUB, a commercial beer supplier.
While Broo beer is currently produced at the company’s Mildura facility, the new agreement is set to provide “increased production and supply capacity” for its Broo Premium Lager and Australia Draught ranges.
At this stage, the contract is set to last two years, but can be terminated by either Broo or CUB with four months’ notice.
Under the deal, Broo expects to order 48,000 cases of beer from CUB every quarter.
In its latest financial update, the brewer went cashflow-negative by $137,000, despite reporting $420,000 in customer receipts over the June quarter.
However, Broo had just $76,000 in the bank on June 30 — leaving it with only half a quarter of funding left if spending levels stayed the same.
When prompted to discuss its financial position in the June quarterly report, Broo said it had taken steps to reduce staffing numbers and overhead costs.
“The company is actively managing a difficult economic environment and is seeking out new opportunities with potential strategic partners. The board is satisfied that additional funds can be raised via debt or equity funding as required to continue to fund business operations,” Broo commented in its June cashflow statement.
As a result, news of a fresh capital raise may not surprise shareholders. But until another announcement is made, the details of the raise will remain unknown.
Broo shares last traded for 2.4 cents each on August 21.
