- After going public just six months ago, advertising analytics firm and former momentum crowd favorite Alfi finds itself in great trouble already.
- Last month, the board of directors placed the company's CEO and founder as well as other officers on paid leave and conducted an investigation into a number of questionable transactions.
- Subsequently, Alfi just recently appointed an independent accounting firm and the chairman of the audit committee resigned while the SEC commenced its own investigation into the company.
- Preliminary Q3 numbers look ugly with remaining cash of $10.1 million down by almost 50% sequentially. The company is likely to run out of funds in Q1/FY2022 at the latest point.
- Alfi needs to raise additional capital as soon as possible to keep the lights on and continue the recently commenced roll-out of its platform. Given the very real prospects for material, near-term dilution, investors should sell existing positions and move on. Even a short sale could yield decent results for speculative investors able to stomach potential volatility in the shares.
For further details see:
Alfi - Disaster Keeps Unfolding - Sell