CXL
I hold shares in CXL. Will MM Emerging companies portfolio be purchasing their full entitlement of additional shares in the Calix SPP? What is the reason behind MM's decision? When do you see Calix becoming profitable?
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Answer
Hi Angela,
Given the current share price (75.5c) is around the offer price (75c), there is not enough discount for us to participate. We would only consider participating if there was over a 10% discount given the volatile nature of the stock and our uncertainty around timeframes for when CXL will be able to stand on its own two feet (i.e. become profitable). We do not envisage that happening in the next 3-years unless something material changes. We did hear the institutional placement was reasonably well supported, but we did not participate in that either.
