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Buddy Technologies Asked To Justify ASX Listing

After smart globe manufacturer Buddy Technologies posted a six-month loss of A$49.4 million recently, the ASX has again asked the company to justify its listing on the stock exchange.

This marks the third time in under 12 months the company has been asked to please explain by ASX.

The Australian Securities Exchange put eleven questions to the company, according to the Daily Telegraph, including the very pointed: “On what basis do the directors consider that BUD is a going concern?”

The company has $1.3 million in cash, and $24.7 million in liabilities, with negative working capital of $7.1 million and a net liability position of $6.4 million.

Buddy said that $16.1m of its current liabilities, “while classified as current liabilities in the half year report, remain due and payable in December 2023 and May 2024’’. This money is owed to venture debt firm Partners For Growth, who “continually engaged with, and continues to engage with BUD on a regular basis in relation to BUD’s financial and operational performance and remains supportive.’’

Buddy also said that at the end of 2021 had $4.1 million in accounts receivable and inventory of $12 million. “Approximately 90 per cent of this inventory was onsite at BUD’s warehouses, fully paid for and ready to ship/sell,” the company stressed.

Buddy also pointed to “the company’s historic track record of being able to raise funds to support its business plan as and when required.”

“BUD considers that it has sufficient financial capabilities to continue financing the activities detailed.’’



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