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- Roto-Gro International (RGI) has ended the week in a trading halt as it prepares to conduct a capital raise
- The company will remain in the halt until the earlier of November 24 or when an announcement is released to the market
- In the September quarter, Roto-Gro burnt through $357,000 with the majority going towards design and innovation, and administration and corporate costs
- As of September 30, the company had only $88,000 left in the bank
- Coupled with its September quarter outflows, it means the business only has enough to support operations for a quarter of a quarter
- However, this didn’t phase Roto-Gro as the company secured a $1.25 million convertible note – all of which has now been received
- Shares in RGI last traded for 4 cents on November 18
Roto-Gro International (RGI) has ended the week in a trading halt as it prepares to conduct a capital raise.
The company will remain in the halt until November 24 or when an announcement is released to the market.
In the September quarter, Roto-Gro burnt through $357,000, with the majority going towards design and innovation, as well as administration and corporate costs.
As of September 30, the company had only $88,000 left in the bank. Coupled with its cash outflows, RGI only has enough capital to support operations for a quarter of a quarter if spending levels remain the same.
However, this doesn’t phase Roto-Gro, as the company recently secured a $1.25 million convertible note to boost its cash reserves.
Roto-Gro last tapped investors for cash in December 2019 when it undertook a $2.3 million placement.
More than 18.65 million fully-paid ordinary shares were issued to institutional and sophisticated investors at 12.5 cents, together with a one-for-two attaching option exercisable at 20 cents and expiry two years from issue.
Roto-Gro used the money to develop its Health Canada cultivation licence and for working capital.
At this point, Roto-Gro is yet to disclose how much it is raising or what it will use the funds for.
Shares in RGI last traded for 4 cents on November 18.
