Shareholders of Fat Cactus Limited are buoyed that the company is finally set for a turnaround in fortunes following the latest round of capital raisings.
It’s been a tough journey for shareholders in the company which listed on the sharemarket five years ago and are yet to report a single profitable quarter, despite raising capital each year since listing, and convincing shareholders to buy more.
Vern Laidhoff, the corporate advisor leading the capital raising, has encouraged shareholders to participate in the raise and is confident it will go a long way towards shareholder returns.
“This money will be crucial in working capital because the Fat Cactus team is so close to a major breakthrough and this extra million dollars will be just be what they need to achieve it,” said Laidhoff.
“Once they get the breakthrough, it’s going to mean the company has a growth opportunity in emerging markets and can build shareholder value.
“By participating at 1 cent per share, shareholders can reduce their average purchase price for their holdings, and gain international exposure within their portfolio because something big could be on the horizon with this blue sky opportunity.”
Fat Cactus initially floated at $2.00 per share with management consistently paid their annual remuneration from funds raised for “working capital”.