- Digital services company iSentric (ICU) has entered a trading halt ahead of a capital raise announcement
- While the company hasn’t hinted at what the funding will be put towards, its March quarterly report was less than impressive
- The company’s various divisions experienced setbacks and attracted fewer projects due to COVID-19 lockdowns and smaller budgets
- Whether the divisions will make a near term recovery is yet to be known
- iSentric’s shares last traded for 1.6 cents each on July 3
Digital services company iSentric (ICU) has entered a trading halt ahead of a capital raise announcement.
The company expects to recommence trading when the announcement is made or by Wednesday, July 8.
While the company hasn’t hinted at where the funding will go, its March 2020 quarterly report was less than impressive.
iSentric’s Digital Media and Services, Enterprise Mobility and Digital Gaming divisions have a particularly strong presence throughout Asia, where the effects of COVID-19 were harshly felt.
The company claimed the social and economic conditions in Malaysia, Indonesia and Myanmar caused a slump in its various businesses.
iSentric’s Digital Media and Services Division in Indonesia was impacted by a service platform cancellation by telecommunications partner, XL Axiata. This reduced marketing support and has meant management has to work closely with XL Axiata to develop new digital products in the upcoming quarters.
The Enterprise Mobility Division depends on annual support and maintenance from customers and bulk SMS services. Unfortunately, as large financial institutions have reduced their spending, iSentric was unable to secure new projects. Looking ahead, management is working on reducing costs to potentially secure new projects while the downturn continues.
Further, the company’s Digital Gaming Division was impacted by technical issues in the “Shan Koe Mee World” game. The gaming team has been developing a new backend server to solve these issues as soon as possible. If all goes well, the division expects revenue to recover as users spend more time on social gaming.
Whether the upcoming capital raise will help the divisions recover is yet to be seen.
iSentric’s shares last traded for 1.6 cents each on July 3.