At time of writing, shares of Dotz Nano Ltd [ASX: DTZ] are up by 29.4% to 10.5 cents, in today’s trading. Dotz Nano Ltd is a technology company focusing on the development, manufacture and commercialisation of graphene quantum dots and advanced carbon dots.
Why did Dotz Nano Ltd shares do this?
It comes after they announced their quarterly cash flow statement yesterday. The company generated negative operating cash flow of $1.385 million, with most of the expenses related to management, director salaries and corporate advisor fees.
The market wasn’t happy.
That said, the company announced a major order to be used in industrialised sector today. It was an undisclosed amount, but the market applauded the achievement.
What now for Dotz Nano?
The share price has fallen from 25 cents on 23 November, to a low of 8.3 cents last month. The vicious downtrend has weighed on frustrated shareholders. But the latest announcement is a massive step forward for the company, allowing it to transition into the revenue-generating phase.
Dotz Nano Ltd has completed multiple pilot studies over the past 12–18 months, aimed to boosting revenue. And is moving into final negotiations with a number of potential clients. That said, until the company discloses the sales totals, it’s unlikely the market will bid the share price higher.
Today’s announcement is a big step forward. But the company needs to demonstrate the profitability of its products before the market takes it seriously.
Resources Analyst, Markets & Money
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