- Welding tech developer K-TIG (KTG) has entered back-to-back trading halts ahead of a capital raise
- Shares in the industrial stock will stay frozen until Tuesday, September 8, unless the company can disclose details of the raise earlier
- At this stage, it’s unclear how much K-TIG wants to raise or what the funds will be used for
- In its preliminary FY20 report, K-TIG tabled a 68.8 per cent slide in revenue and almost quadrupled its loss after tax
- And at the end of the June quarter, K-TIG went cashflow-negative by $624,000 after recording $268,000 in customer receipts
- Based on its current spending levels, the industrial welder only has enough capital to support operations for another five quarters
- Shares in K-TIG last traded for 26 cents on Tuesday, September 1
Welding tech developer K-TIG (KTG) has entered back-to-back trading halts ahead of a capital raise.
Shares in the industrial stock will stay frozen until Tuesday, September 8, unless the company can disclose details of the raise earlier.
At this stage, it’s unclear how much K-TIG wants to raise or what the funds will be used for.
The ASX-lister has developed Keyhole TIG, a patented welding technology which is said to dramatically reduce the time and energy it takes to complete tungsten inert gas (TIG) welding.
In its preliminary FY20 report, K-TIG tabled a 68.8 per cent slide in revenue and almost quadrupled its loss after tax.
Looking at its operating balance sheet, the company reported $442,000 in customer receipts, but had to fork out $4.3 million in supplier and employee payments over the financial year.
At the end of the June quarter, K-TIG went cashflow-negative by $624,000 after recording $268,000 in customer receipts. Staff payouts were the biggest expense on the company’s operating balance sheet, with over $600,000 put towards covering employee costs over the period.
By June 30, K-TIG had nearly $3.5 million stowed away in the bank. But, based on its current spending levels, the industrial welder only has enough capital to support operations for another five quarters.
As a result, news of a capital raise may not be much of a surprise to shareholders.
Shares in K-TIG last traded for 26 cents on Tuesday, September 1.