QMCO - Flux Power - Sell On Going Concern Warning And Near-Term Capital Raise Requirements
- Flux released Q2/FY2022 results. Elevated working capital requirements caused by persistent supply chain disruptions resulted in record quarterly cash usage.
- Without raising additional capital, the company is likely to run out of funds by the end of June.
- Flux Power's liquidity struggles required a going-concern warning in the company's quarterly report on form 10-Q.
- With supply chain disruptions unlikely to be resolved anytime soon, investors need to prepare for a near-term capital raise at rather unfavorable conditions.
- Given these issues, investors should consider selling existing positions or outright shorting the shares.
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Flux Power - Sell On Going Concern Warning And Near-Term Capital Raise Requirements