Join our daily newsletter At The Bell to receive exclusive market insights
- Industrial water and wastewater treatment company De.mem (DEM) enters a trading halt ahead of a capital raise
- Under the halt, DEM shares will be paused until Thursday, July 28, or when further details about the raise are released to the market
- Further, the company reports its “best ever June quarter” in its history with around $5.6 million in cash receipts, up around six per cent from this time last year
- This is De.mem’s 13th consecutive quarter of cash receipt growth from the prior corresponding period – despite COVID-19 challenges
- On the market, DEM shares last traded at 18.5 cents on July 20
Industrial water and wastewater treatment company De.mem (DEM) has entered into a trading halt ahead of a capital raise.
It is not known how much the company is aiming to raise or where the funds will be spent.
Under the halt, DEM shares will be paused until Thursday, July 28, or when further details about the raise are released to the market, whichever comes first.
Additionally, the company has also reported its “best ever June quarter” in its history with around $5.6 million in cash receipts, up around six per cent from this time last year.
De.mem has now recorded 13 consecutive quarters of cash receipts growth on the prior corresponding period – despite COVID-19 challenges.
Based on the reported growth, De.mem is now expecting recurring cash receipts and/or revenue of between $17.5 million to $20 million for CY22, up from the previous forecast of between $16.5 million to $19 million.
Net operating cash outflows of around $470,000 in the June quarter were significantly reduced from $916,000 in the March quarter.
During the quarter, the company signed a new three-year service contract with Rio Tinto (RIO) to manage the potable water and sewage treatment plants at the Amrun mine in Queensland. The agreement has a value of around $1.7 million in revenues.
At the end of the period, DEM had $3.97 million in total available funding.
On the market, DEM shares last traded at 18.5 cents on July 20.
