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Your current view regarding Calix (CXL) from a risk reward perspective.

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    Your current view regarding Calix (CXL) from a risk reward perspective.

    Hi James and team, I am interested in your current views on Calix (CXL). I note they raised capital about 18 months ago at a much higher level to the current share price. The share price has been in a downward spiral since then. They appear to be spending most of their money on research and development. Three questions. Do you believe there is a risk of another capital raise in the near term; are they likely to start making money in the near future; and would you be a buyer at these levels if you didn’t already own them in the Emerging Companies Portflio? Thank you Chris G.

    Answer

    Hi Chris,

    Australian environmental technology company, Calix (CXL) has indeed endured a very tough time over the last few years and we’ve covered a number of CXL‘s bad sessions over recent years. As you say it raised $60mn back in 2022 at a lofty $4.55. This space is proving to be a very tough and capital intensive place to operate and although its looks solid around $1, it feels like a coin toss as it bounces up towards $1.50.

    • We own CXL in our Emerging Companies Portfolio but we are not looking to increase this exposure given we don’t visibility on when cash burn will stop, making it a candidate to need more money in the future.

    NB CXL is not marked as an Active Investment on the MM Site which means we are not buyers at current levels. given the decline in SP relative to our initial position size, this now represents a very small holding in that portfolio.

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    Calix Ltd (CLX)
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