Shares of Cloudbreak Discovery, the natural-resource project generator, saw a 12% decrease on Wednesday following the company's announcement that it will need additional funding in the next year. Despite reporting a narrowed fiscal 2023 loss, there is a material uncertainty surrounding the company's ability to continue operating.
Although Cloudbreak Discovery expressed confidence in securing the necessary funds, it acknowledges the existence of challenging market conditions. For the year ending June 30, the net loss amounted to £4.0 million ($4.9 million), compared to a loss of £5.56 million during the same period the previous year. Notably, the company did not generate any revenue.
As of June 30, Cloudbreak Discovery had £244,074 in cash and cash equivalents. The company remains optimistic about its future prospects, stating that certain projects are reaching a point where royalty payments may be received, further solidifying its business model.
The board has thoroughly reviewed the company's existing assets and is actively exploring ways to advance all projects. Despite the recent setback in share value, Cloudbreak Discovery remains resilient and determined to navigate the challenges ahead.
Shares at 0828 GMT were down 0.05 pence at 0.38 pence.