- Home security specialist Scout Security (SCT) frozen its shares as it prepares to launch a fresh capital raise and announce a “material transaction”
- The details of the raise and transaction are still unknown, with the company expecting to make the announcements next Thursday
- In April, Scout said it had just under $750,000 to play with and it was expecting business-as-usual over the June quarter — meaning this figure is likely largely unchanged
- Scout sells home security products like door panels, motion sensors, surveillance products, and more
- Shares in the company last closed worth five cents each
Home security specialist Scout Security (SCT) frozen its shares as it prepares to launch a fresh capital raise and announce a “material transaction.”
The details of the raise and the transaction are yet to be revealed, but the company requested back-to-back trading halts today as it irons out some of its plans ahead of an announcement slated for Thursday, July 16.
In Scout’s latest quarterly report, the company revealed it had just under $750,000 cash to play with at the end of April — $112,000 ordinary operations, $400,000 from the repayment of monthly service fees from resale partner Zego, and $223,000 from the U.S. CARES Act, which is completely forgivable.
The company was cashflow positive by $12,000 over the March quarter and said it was expecting business-as-usual over the June quarter, meaning it likely has a similar amount of cash on hand ahead of next week’s capital raise.
Of course, given the extraordinary circumstances brought about by the COVID-19 pandemic, Scout told shareholders in April it was positioning itself to capitalise on the uptick in interest in contactless business models. The company said at the time several potential new partners were likely to come on board during the June quarter but has not announced any new deals since then.
Whether the upcoming capital raise and transaction has anything to do with the new business model or partnerships is not know, but shareholders have until late next week to speculate.
Scout sells a range of home security products including door panels, motion sensors, surveillance products, glass break sensors, and more.
Shares in Scout last closed worth five cents each. The company has a $4.76 million market cap.