I’d certainly be keeping my distance from ICQ until it has demonstrated that it on track to operate profitably. With its continuing operating losses, it’s inevitable that they will need to raise more capital and that will continue to keep a lid on the share price.
iCar Asia up from 16c to 27c in the last couple of weeks, breaking through resistance at 25c today.
On 22 August the company said it was progressing towards profitability with strong 1H 2019 results, specifically a 20% growth in revenue and a decrease in operating expenses of 9%. Its operating losses are continuing but are getting smaller and the company is now anticipating EBITDA break even by the end of 2019.
Its balance sheet has been strengthened recently through the receipt of $7.67 million in funds from the exercise of options.
This morning ICQ announced that it has entered into a binding agreement to acquire Carmudi Indonesia for US$3 million (approximately A$4.4 million). The acquisition is expected to double its Indonesian business revenues and increase growth rates.
Well it certainly sounds like things are improving for ICQ. If they can get to EBITDA break even by the end of this year they might be due for a re-rate.
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