By Elric Langton and Mike Caine | 28 March 2024
Elric and Mike have a financial interest in Ava Risk Group.
Ava Risk Group Limited (ASX: AVA), somewhat optimistically, heralds the conclusion of its $3 million institutional Placement of newly issued ordinary shares, which it labels successful. The firm also heralds plans to initiate a Share Purchase Plan (SPP) targeted at existing shareholders to garner an additional $1 million.
The capital amassed from these ventures is earmarked for backing the operationalisation of recent contract acquisitions, ostensibly to bolster the sale of units, provide dedicated support resources, and ensure infrastructure readiness in line with contractual obligations, not to mention the continuation of product innovation. Additionally, a portion of these funds is designated for large-scale Detection programs. While this approach, on the surface, may seem reasonable, it harbours underlying concerns worth noting.