DEM - De.mem Limited

De.mem announces A$3m Placement to acquire remaining stake in German subsidiary and support Build, Own, Operate opportunities

Key Highlights

• De.mem has received commitments of approximately A$3.0m from institutional and sophisticated investors through a placement of ordinary equity at a price of $0.14 per share
• The Placement was strongly supported by new and existing institutional and sophisticated investors
• The capital raised will fund the acquisition of the remaining 25% ownership of De.mem-Geutec GmbH as well as several Build Own Operate opportunities.
• Additional funds will be used to allow future acquisitions and general working capital.

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Key Highlights – H1 CY 2022:
 Record H1 cash receipts of $10.7m, 27% above prior corresponding period
 Record H1 revenues of $9.2m, 1% above pcp (large, one-off project revenue recorded in pcp)
 Strong growth momentum maintained with 13 consecutive quarters of cash receipts growth vs pcp
 Recurring revenue segments now account for more than 90% of total revenue (38% in CY 2018)
 Gross margins have continued increasing to 34.1% in H1 CY 2022 (25% in CY 2018)
 EBITDA loss significantly reduced to $800,000 in H1 CY 2022, thereof $470,000 in Q1 and $330,000 in Q2
 Strategic focus shifting towards profitability with quarterly EBITDA and/or operational cash flow break even expected by H1 2023
 Strong operational progress during the period:
o Signed three-year service agreement with Rio Tinto worth $1.7m
o Delivered on two BOO contracts worth $3m over five-year term, invoicing starting from H2
 Completed strategic acquisition of Stevco Seals & Pumps (Victoria) Pty Ltd in Melbourne, Victoria
 Appointment of Danny Conlon as Non-Executive Director, former CEO and Managing Director of Veolia Australia & New Zealand
 Closed $3m share placement after the end of the reporting period, which supports growth prospects, cash balance on pro forma basis of $6.8m

"Continued growth, strong operational progress, focus on margins & profitability"

........... well, I'm glad they are; someone has to.

another formerly held minnow

Key Highlights

• Highest quarterly cash receipts in a March quarter (approx. $5.8m)
• Growth momentum continues with 16 successive quarters of cash receipts growth vs pcp.
• Positive net operating cash flows of ~$19,000
• Second consecutive quarter with positive net operating cash flows
• Strong results achieved in spite of historical seasonality within the business; the March quarter historically typically only delivering approx. 20% of total annual cash receipts
• Strong progress continues operationally with a number of contract awards received during the reporting period – including new contracts for the supply of water treatment equipment to customers in Qld and Tas.
• Progressing towards NSF (drinking water) certification for new Graphene Oxide membrane; preparing for commercial launch of domestic water filtration product in H2 2023
• Company well-funded with cash balance of approx. $4.8 million as of 31 December 2022

Support has returned this CY23 after a period of slippage.



.... directors and mgmnt missed out on the 21.7c oppies

Looks worth a follow - have read through most of the thread. A long frustrating path towards a positive NPAT but the 16 consecutive Quarters of revenue growth is eye opening. Unfortunately so is the chain of capital raisings, mainly for acquisitions and build-own-operate projects *, after each of which cash quickly depletes.
Some 'high quality' clients like Northern Star and Rio Tinto. Attractive business to share in.
Chart looks good currently with a rounding low overcoming 15c resistance and price having moved outside the downtrend channel 6 months ago. A heavy week of selling in April barely budged the price. I will only consider buying on a pullback however.

*
"'Buy Own Operate' - the private sector builds, owns and operates a facility, and sells the product/service to its users or beneficiaries"

Not Held

All Data WEEKLY

A trading halt is requested pending an announcement by the Company to the market in relation to a capital raising.

9.6c ... am glad I bailed when the slope got slippery

back trading ... holding at 10c (more a placement than going to market for cap raise!)

Closes $2.2m Placement Ahead of Expected Entry Into New Growth Markets

Highlights:

• Received commitments for $2.2m at 9 cps
• Funding almost entirely from existing institutional investors and the Board
• Supporting the execution of contracts and launch of new business such as the company’s new Graphene Oxide enhanced membrane, as well as potential acquisitions

Dona Ferentes said:

Closes $2.2m Placement Ahead of Expected Entry Into New Growth Markets

• commitments for $2.2m at 9 cps
• Supporting the execution of contracts and launch of new business such as the company’s new Graphene Oxide enhanced membrane, as well as potential acquisitions

Click to expand...

moving ... has been around 13c for a while on the Graphene membrane tilt.

And, announces today, ...has passed all National Sanitation Foundation test procedures under NSF Standard 53 for its Graphene Oxide enhanced membrane technology. All technical requirements for the certification are fulfilled and De.mem expects to be officially listed on the NSF website within the coming weeks.

HIGHLIGHTS
- Certification enables immediate commercialization of USA domestic water filtration market opportunity through existing Purafy distribution partnership.
- Company expects over $1m revenue over two years for potable water treatment applications in the North American and Australian markets only.
- Further revenue upside from entering new geographies.
- Other global distribution partnerships being actively pursued.

12c

TH in relation to an acquisition transaction and corresponding capital raising

Quarterly out, $0.16.. a 12 month high

KEY HIGHLIGHTS
- Highest quarterly cash receipts ever recorded of approximately $7.44 million.
- Continued double digit organic growth.
- Continued and stable growth momentum, 22 successive quarters of cash receipts growth versus prior corresponding period (pcp).
- Positive quarterly operating cash flows of $82,000.
- Two recent acquisitions successfully integrated, now contributing to cash receipts and margins.
- On track for record full-year results.