Negative Cash GenerationPersistent negative operating and free cash flows indicate the business is not self-funding its working capital or investments. Over months, this increases reliance on external financing, constrains reinvestment capacity, elevates liquidity risk, and can force dilutive or costly funding if trends persist.
Ongoing Net LossesContinued net losses, even amid revenue growth, suggest structural margin pressures from costs, finance charges, or impairments. Prolonged unprofitability erodes retained capital, limits internal funding for growth or dividends, and delays the company's ability to deleverage sustainably over quarters.
Potential Equity DilutionA board mandate to issue up to 20% of share capital is a structural lever to raise cash but introduces dilution risk for shareholders. Given negative cash flow and losses, the company may need to deploy this authority to shore up liquidity, shifting capital structure and potentially increasing share count over the medium term.