Post by
arh0070 on Jul 10, 2023 9:14am
MARCH 31 2023 AUDITED ANNUAL REPORT.
For some reason I had difficulty accessing BNXA financial reports on SEDAR ,not sure what the problem was.However this morning it was all available for view.I will not go into any detail but a comparison between the annual report of March 2022 and March 2023 show a decline in net cash from about 11 million Canadian to 5 million Canadian .This is currently the last financial data available for review.So the cash burn rate has been about 1.25million Canadian per quarter in the last year ,this coincided with the Crypto winter .There has been a corresponding decline in net asset value of the company.The various loans that they made from Hedge funds at high interest rates are still there .
So BNXA has survived the Crypto winter and things are improving generally in Crypto world .In the next 2-3 years if the 4 year cycle of Crypto stays intact another major bull market will happen.
Obviously during the 7 month delisting they were not able to raise money by share sales etc.
So one might predict that a fund raising will be required in the next 6months in the form of a share sale producing more dilution ,one might think it will be necessary to pay off some of the high interest debt.
So if bnxa relists and trades at 1 $ ,they would perhaps need a 10 million share sale (25% dilution to pay off the debt and provide cash for ongoing expenses and expansion prior to the company perhaps becoming cash flow positive and able to support itself.
However if we get a major bull market in Crypto then bnxa would be well placed to benefit.
Comment by
Abedim15 on Jul 10, 2023 11:26am
Dilution? Maybe but Not a real threat. Banxa has less than 50m shares outstanding. Find me another company in the space that has that few, with a good portion owned by insiders