HARVEST CONFIRMS RECEIPT OF $1M ADDITIONAL FUNDING AND $1.59M R&D REBATE & REDUCED BURN RATE
18TH November, 2024: Harvest Technology Group Limited (ASX:HTG) (Company, Harvest, Group)
announces today the receipt of $1M additional funding with an additional $1M committed to be received in the next 30 days, these funds are as previously announced from a new major investor who invested $1.2M in Q1 via convertible notes with the additional investment via two year convertible notes as detailed previously.
The Company also advises receipt of the R&D Rebate for FY24 of $1.59M.
The receipt of these funds, combined with finalisation of the Company’s cost rightsizing improving the Company’s cash position and reduced cash burn rate going forward. The Company’s operating burn rate is reduced to $225K a month from January, resulting in our projected breakeven point reducing to $6.5M revenue – a huge reduction from the $14M needed in January and a further improvement on our published $10M breakeven point.
Reducing the burn rate and resulting breakeven point, means the Company is 46% to breakeven vs 21% in January, given the size of the customer contracts currently under negotiation and the strong sales pipeline supplemented by our partners, this is a very achievable goal to be breakeven by FY27 or potentially earlier.
