31 October 2014
Business Operations Deliver Underlying Cash Positive Result
ComOps Limited (“ComOps”) is pleased to advise shareholders that the Company has released its Appendix 4C Quarterly Cash Flow Report for Q3 of the 2014 Financial Year today, as required by LR 4.7B.
In Q3, ComOps’ business operations delivered an underlying positive cash flow of $20,000 after adding back the costs outlined in Section 1.7; specifically the costs of finalising the sale of the Korellus ERP business ($0.55m), the cash payments to clear prior period creditors ($0.19m) and the M&A legal and advisory costs ($0.125m) of the current M&A activities.
This continues the dramatic improvement of the company in the 2014 financial year and builds on the initiatives undertaken in the previous quarter.
The three major capital initiatives during Q3 were the:‐
- Finalisation of the 2013 sale of the Korellus ERP business ($0.55m);
- Initial $0.74m payments for the acquisition of E‐tivity (announcement of Sept 5), with $0.5m being the secured loan made to the vendors of the E‐tivity Intellectual Property as part of the consideration and $0.24m being the payout of the E‐tivity debtor financing facility; and
- Raising of $1.47m in a share placement at $0.03 per share, which raised a net $1.32m after costs and the issue of shares in lieu of prior period creditors.
At the end of the quarter, the cash balance was $0.9m.
The acquisition of E‐tivity is expected to complete in late November following the finalisation of the rights issue to raise $3.28m at $0.03 per share and the shareholders meeting on November 17, at which shareholders are voting to approve the issue of shares to the owners of the Etivity intellectual property. We expect that following the completion of the acquisition of E‐tivity and the rights issue that ComOps will finish the year with a significantly increased cash balance and an expanded business that delivers consistently positive cash flow results.
The Appendix 4C quarterly report follows.