Cirralto is stuck in another trading halt as of today, but what could this one be for now? https://www.cirralto.com.au/
At the end of the 4C report by CRO which was put to the market on 29th December 2020, the company was sitting on approximately ~$4million of cash and cash equivelants. So why are CRO now in another trading halt for capital raising? The answer probably lies in the massive run up in share price recently.
The share price over the last year has been massive for CRO, with holders returrning over +2,200%. So maybe the massive run up of over last week of nearly 200%. So why is CRO stuck in another trading halt?
However, the halt surely isnt for cash used for any of their current operating activites as per below. CRO mentioned that they were adequetly funded for present operating model.
So we are either thinking perhaps this if for an acquisition or maybe just to take advantage on an increased share price.
What about the recent Appstablishment Acquisition?
As per the companies announcement on December 7th. CRO enters a binding agreement to acquire 100% of Appstablishment software group.
Appstablishment is a Software-as-a-Service (SaaS) company that develops software products for businesses to efficiently collaborate. Through this agreement CRO is set to realise an increase in revenues of ~500k per year. However this was known by the quarterly report that was put out by the company on 29th Dec.
The Capital Raise Seems opportunistic at best!
However, given that CRO’s current focus is getting its Spenda Software and SpendaCollect to market in Q3 of 2021. We are taking a bet that the current capital raise is opppurtunistic at best.
Prophet will not be taking part in CRO Capital Raise. Well done to holders to get this far. Diamond Hands required for the next few months IMO. Instead maybe take a look at RNT https://prophet-invest.com/does-rent-com-warrant-a-bev-slattery-factor-of-10x-rnt-asx
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