Simavita Limited

Seeking Continuous Support from Shareholders to Meet Business Objectives: Post falling about 74% in last one year, Simavita’s stock rose 25% on May 18, 2018. The group develops and markets advanced systems for wearable and disposable technologies for the aged and disabled care market and the global diaper manufacturing industry. This generates approximately USD21bn in annual revenues. While the key reason behind the stock movement is yet to be understood, the price rise may be owing to investors leveraging the low levels and/ or is a movement under a short selling opportunity. It is also to be seen if the company can be a beneficiary to the latest Federal Budget where baby boomers have been given a breather. Meanwhile, for the quarter ended 31 March 2018, Simavita Limited (ASX: SVA) recorded cash reserves of AUD$850,000. As per latest Special General Meeting (SGM) result, the shareholders of the company approved unsecured convertible notes totalling of $1.4m before costs. This fund will be used to progress major licensing opportunity for AlertPLUS which will support to tap the fastest growing market of adult and infant diaper industry. In order to do this, the company continues to progress licensing discussions with several major international diaper manufacturers based in North America and Europe. Receipts from customers for the period amounted to $143 thousand for the current quarter ending 31 March 2018. With this, the group’s cash and cash equivalents at the end of the quarter amounted to $807 thousand as at March 2018.


Cash Flow Statement (Source: Company Reports)

Moreover, based on the PIVOT business strategy, the Company is working hard to rapidly transition to a profitable and valuable business. Further, it continues to tightly manage ongoing operating costs with total cash outflows for the quarter of $1.39 Mn, down 16% from the previous quarter of $1.66 Mn. The company expected cash outflows for the coming quarter to be $1.38 Mn. However, the company in the short-term period will continue to look towards shareholder support to fund operations and to meet its business objectives. As of now, we maintain our “Hold” recommendation on the stock at the current market price of $ 0.015.

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.