Technology and cloud service provider, FirstWave Cloud Technology Limited (ASX: FCT) on 11th April 2019, provided an update on the company’s cash position.
The company expects that the operating cash flow will materially improve for the quarter as a result of a change in the billing process with its major customer, which will result in one-off cash receipts of $5.4 million.
The company also highlighted that there would be an increase in the financing cash flow of $6.1 million after the successful completion of capital placement to institutional and sophisticated investors.
The group also expects that its current cash outflow for the quarter will remain unchanged from the previous quarter, which will include:
- Operating expenditure of $4.5 million; $2 million for Domestic Business (Australia)
- 0.9 million for the International business
- $1.6 million in corporate services
There will be cash outflow of $0.4 million through the investing expenditure.
The company recently appointed Mr. Jason Singh as the Chief Financial Officer. At present, Mr. Singh is holding the position of Head of Finance for the company.
Mr. Singh has more than 18 years of experience in senior finance positions, both in public as well as private companies.
On the appointment of Mr. Jason Singh as the CFO, the CEO of the company, Mr. David Kirton, commented that since March 2018, when Mr. Singh joined the organisation, he made a positive impact on FirstWave. He also stated that Mr. Singh is a strong and seasoned finance professional, whose experience will help in aligning right culture and driving the company through the ‘expand and scale’ phases of our five-year strategic plan.
On the one-off cash inflows, Mr. Jason Singh stated that the combination of these one-off cash inflows would help the company in managing its working capital effectively when it continues to execute the expansion phase of its five-year strategic plan.
He also highlighted that the focus of the company will remain on monetisation of the Expand phase of its global go to market strategy.
Recently, on 26th March 2019, the company announced that the eligible shareholders can participate in the share purchase plan, where they can apply for up to $15,000 of new fully paid ordinary shares in FirstWave Cloud Technology without any brokerage or transaction cost. These new shares under SPP will be issued on 30th April 2019 and have the same rank as its fully paid ordinary shares with equal voting rights as well as entitlements. On 4th April 2019, the company provided various terms and conditions of the Share Purchase Plan for 2019.
FCT announced the re-signing of Product and Services Agreement with Telstra Corporation on 1st March 2019.
In the previous six months, FCT stock generated a return of 23.91%. The stock gave an excellent YTD return of 78.12%. At market close on 11th April 2019, the shares of FirstWave Cloud Technology Limited was trading at A$0.305, up by 5.172% as compared to its previous closing price. FirstWave Cloud Technology Limited has a market capitalisation of A$80.14 million and approximately 276.34 million outstanding shares.
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