On 6 December 2018, RBR Group Limited (ASX: RBR) announced that it was able to raise $1.3 million through convertible notes. The purpose of raising funds is to prepare itself for an upcoming opportunity from US$50 billion LNG construction boom in Mozambican. On 6 December 2018, these convertible notes have received a green flag from the required shareholders at the meeting. Now, these convertible notes will be issued to the professional and sophisticated investors.
For the upcoming LNG project, RBR successfully secured its substantial training and labor-hire contract. It is also an accredited training organization under the Engineering Construction Industry Training Board (ECITB). Under the accreditation, the company is supposed to provide training to the potential workers as per the standards of ECITB. These workers will be trained for the employment purpose of the LNG industry.
LNG project is a wide construction project which requires a workforce of 50,000. Further, it is a requirement from the government that the workforce must be sourced within the country.
As per the recent update, today an allotment of $520k of Convertible Notes will be done by the company along with the shares and options. The income generated through these convertible notes will be used to purchase equipment for the training purpose. The other purpose of these funds will be to enter into the lease agreement on training facilities near the LNG construction site, upgradation of the IT systems, enhancing the skills of local workforce by recruiting skilled staffs from Mozambican and for meeting the working capital requirement.
The overall ten years performance of the company is –60.69%. However, there is a positive performance seen in the five years performance of the company which is 41.66%. The 1-year performance of the company is 71.43%.
For the year ended 30 June 2018, the company incurred a net loss of $1,423,464. The company holds a total asset of $786,618 and total liabilities of $247,516 which signifies that the company is in a position to meet its long-term obligations. The company has a total net current asset worth $563,316 and total current liabilities of $247,516 which signifies that the company is in a position to clear is short-term obligations as well as the net working capital. The total shareholder’s equity is worth $539,102.
The net cash outflow from the operating activities of the company is $1,025,384. Here, the main source of cash outflow was due to the payment made to the suppliers and employees. The net cash outflow from the financing activities of the company is $12,132. Here, the main source of cash outflow was due to the payment made for the plant and equipment. The net cash inflow from the investing activities of the company is $1,040,085. Here, the main source of cash inflow was due to the income generated from the issue of shares.
By the end of the year, the net cash available with the company is $341,920. At present, the share is trading flat on ASX.