- RightCrowd (RCW) has entered a trading halt ahead of a capital raise announcement
- No details have been revealed just yet, but the halt will be lifted by August 12 at the lastest
- The company recently ended the June quarter with $1.59 million worth of cash in the bank, after burning through $1.1 million in the same period
- It also recorded a 20 per cent drop in sales revenue in Q4 FY20 when compared to the last quarter of FY19, due to the coronavirus pandemic
- But it wasn’t all bad news, RightCrowd also saw an uptick in market interest in its products due to COVID-19
- The company’s share last traded for 24 cents per share
Security software company RightCrowd (RCW) is gearing up for a capital raise after placing its shares in a trading halt.
The trading halt will remain in place until August 12, or until the full details of the capital raise are announced.
Recently, RightCrowd revealed it had ended the June quarter with $1.59 million in the bank after burning through $1.1 million.
This means the company has enough cash to last another 1.43 quarters if spending levels remain the same.
However, RightCrowd said it had already secured an additional $5 million in funding from the Australian and U.S. Government’s stimulus programs to bolster its balance sheet.
The company also announced in its June quarterly update that it had recorded a 20 per cent drop in sales revenue in Q4 FY20, when compared to the last quarter of FY19, due to the coronavirus pandemic and a delay in sales contracts being signed.
It wasn’t all bad news though; RightCrowd said it did see a significant spike in interest in products which assist businesses in returning to work post-COVID-19.
The company now believes this boost in demand will help it grow its annual recurring revenue to over $8 million in FY21.
Before today’s trading halt, shares in RightCrowd were trading for 24 cents per share on August 10.