Q: Can I get your thoughts please Else Nutrition? Thanks
5i Research Answer:
At $20M market cap, and down 74% in the past year, we would not consider BABY investable right now. Size risk and tax-loss selling makes it extra risky right now. While it has growing revenue potential, it has little cash, losses and highly negative cash flow (-$23M in the past 12 months). Insiders own 23%, making the stock thin. It is likely going to need new capital soon, which will dilute shareholders if it sells equity. Adding debt instead would add more risk. We think investors can sit this one out due to the extreme risks here.