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- Social commerce business Crowd Media (CM8) has placed its shares in a trading halt as it gets ready to undertake a capital raising
- The company’s shares will remain halted from trade until Tuesday, November 17
- Shareholders will have to wait until then to find out how much Crowd is planning to raise, unless it announces the details early
- If the capital raise goes ahead, this will be the second time in almost six months the company has tapped investors for extra cash
- Crowd raised $1.5 million via a share placement back in June, with the money used to bolster its balance sheet and increase sales
- The company ended the September quarter with $1.23 million worth of cash in the bank after burning through $566,000
- Shares in CM8 last traded for 6.4 cents each on November 12
Crowd Media (CM8) has placed its shares in a trading halt as it gets ready to undertake another capital raising.
The social commerce company’s shares will remain halted from trade until Tuesday, November 17 at the latest.
It’s likely shareholders will have to wait until then to find out how much Crowd is planning to raise, unless it can announce the details early.
If the capital raise goes ahead, this will be the second time in almost six months the company has tapped investors for extra cash.
Crowd raised $1.5 million via a share placement to investors back in June, with the money used to bolster it balance sheet, increase sales, accelerate scale-up and pay $500,000 off its Billfront facility.
More recently, the social commerce business ended the September quarter with $1.23 million worth of cash in the bank. It started the period with $1.91 million.
Crowd burnt through $566,000 during the quarter, with most of that going to staff costs, advertising and marketing, and product manufacturing.
The company also had $1.16 million in unused financing facilities, meaning it had enough funds stored away to keep running for over four more quarters.
Before today’s trading halt, shares in CM8 were trading for 6.4 cents each on November 12.
