- Junior resource developer Emu NL (EMU) has frozen its shares until early next week as it taps investors for fresh funding
- While the details of the raise are so far unclear, shareholders should find out more on or by Monday, September 28
- Until that time, just how much the explorer wants to raise or how the offer is structured will remain a mystery
- Emu released its latest quarterly cashflow report in late July, indicating the company went cashflow-negative by $406,000 over the June quarter
- By the end of the period, Emu had just over $1.66 million in the bank
- Based on the company’s current spending levels and its cash reserves, Emu has enough cash to get by for just four more quarters
- Emu shares last traded for 3.1 cents per share on Monday, September 21
Junior resource developer Emu NL (EMU) has frozen its shares until early next week as it taps investors for fresh funding.
While the details of the raise are so far unclear, shareholders should find out more on or by Monday, September 28.
Until that time, just how much the explorer wants to raise or how the offer is structured will remain a mystery.
Emu released its latest quarterly cashflow report in late July, indicating the company went cashflow-negative by $406,000 over the June quarter.
The vast majority of the cash burn was chalked up to exploration expenses, while nearly $120,000 covered staff, admin and corporate costs.
By the end of the June quarter, Emu had just over $1.66 million in the bank.
Based on the company’s current spending levels and its cash reserves, Emu has enough cash to get by for just four more quarters.
As a result, news of a fresh capital raise may not be all that surprising to shareholders,
Emu last launched a rights issue around this time last year, aiming to raise $6.2 million by issuing roughly 156.49 million shares and 78.24 million options.
However, the offer was undersubscribed, and underwriter Strategic Bank International chipped in roughly US$2.67 million (at the time, this was equivalent to roughly A$4 million). All up, Emu raised just shy of $4.6 million before costs.
Emu shares last traded for 3.1 cents per share on Monday, September 21.