Invigor’s Shares Nosedive 20% Despite Strengthening Its Balance Sheet With $3.68 Mn Debt Reduction

  • Dec 17, 2018 AEDT
  • Team Kalkine
Invigor’s Shares Nosedive 20% Despite Strengthening Its Balance Sheet With $3.68 Mn Debt Reduction

Invigor Group Ltd. (ASX: IVO) is a B2B data intelligence and solutions company which is involved in the operation of providing strategic insights and recommendations to businesses. On 17 December 2018, Invigor Group confirmed that it has received conversion notices from the holders of Convertible Notes which represents $3.18 million that were due to expire on 14 December 2018. Following this news, the share price of the company decreased by 20 percent as on 17 December 2018.

The company is expecting the remaining balance of Convertible notes of $0.5 million to convert into shares before 21 December 2018. Through these conversions, the company is able to strengthen its Balance sheet by reducing its debt by $3.68 million.

As per the company’s announcement, the $3.68 million of Convertible Notes will be converted into Invigor shares at 0.4c. The first tranche of conversions was issued on 30 November 2018 for $1.63m plus interest which represent 400,873,223 fully paid ordinary shares. The remaining conversions will be issued before 21 December 2018 for $2.05m plus interest which represents an additional 532,580,822 fully paid ordinary shares.

As per the company’s Chief Executive Officer (CEO) Mr. Gary Cohen, the Company’s Board is focusing on reducing the company’s debt, and it is assessing different ways to reduce outstanding debt rapidly. He further added that the company’s operations in Australia, Asia, and Europe have excellent growth prospects, and more investment in these operations could further support the revenue stream which could help the company in its grow and extinguish its debt.

Recently the company’s 100%-owned German subsidiary, TillerStack secured $720,000 worth of new contracts with leading European telecommunications company, UnityMedia to provide new mobile devices, accessories, and associated services to further empower the customers FSM (Field Service Management) operations.

The company has recently launched a Share Purchase Plan (“SPP”) under which the eligible shareholders will be able to acquire up to $15,000 of additional shares in the Company at 0.45 cents per share.

In the November month, the company received Co-Sell ready status from Microsoft under which the company will actively work with Microsoft and its channel sales team.  Microsoft channel sales team will be incentivized to sell the Company’s solutions to Microsoft’s extensive customer base, as well as Microsoft’s vast network of partners to offer innovative solutions to meet customers’ needs across the globe.

As at 30 September 2018, Invigor was having net cash outflow from operating activities of $143k, net cash outflow from investing activities of $6k and a net cash outflow from financing activities of $13k. At the end of September quarter, the company was having cash on hand of $10k along with bank overdraft facility of $97k.

In the last one month, the share price of Invigor decreased by 28.57 percent as on 13 December 2018. IVO’s shares traded at $0.004 with a market capitalization of circa $9.95 million as on 17 December 2018 (AEST 2:25 PM).


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