ASX Top Losers: GI Dynamics Inc. (ASX:GID) Australian Agricultural Company Ltd (ASX:AAC) And P2P Transport Ltd (ASX:P2P)

Sector Reports > Latest News > ASX > ASX Top Losers: GI Dynamics Inc. (ASX:GID) Australian Agricultural Company Ltd (ASX:AAC) And P2P Transport Ltd (ASX:P2P)

GI Dynamics Tanks After Quarterly Update

GI Dynamics Inc. (ASX: GID) came under immense selling pressure after reporting disappointing quarterly update for the three months ended September 30, 2019. The stock fell by more than 30% after reporting a widened net loss of $2.7 million compared to $2.2 million reported a year ago.

The company also saw its cash balance in the quarter take a significant hit. Cash and Cash Equivalent decreased to $1.4 million compared to $2.4 million as of June 30, 2019. The change in cash equivalent was mostly because of the cash used in operating activities.

 The company has since moved to address the shortfall in cash by closing a financing agreement reached with Crystal Amber Fund Limited. The medical device company has since received exercise of notices and warrants that paves the way for it to close a $10 million financing line.

GI Dynamics intends to use net proceeds from the offering for general working capital. Part of the funds will also go towards the initiation of patient enrollment for STEP 1 and I-STEP clinical studies and for securing a CE Mark for EndoBarrier.

Australian Agricultural Falls On Dry Condition Concerns

Australian Agricultural Company Ltd (ASX: AAC) fell by 20% days after providing an impressive quarterly update for the three months ended September 30, 2019. In the update, the company indicated that Orchard operations continued to post-harvest and trees continue to showcase evidence of spring growth

 However, the company has warned that continued dry conditions could take a toll on its operations. For instance, the dry conditions have continued to exacerbate tensions with the water markets, especially in the Lower Murray irrigation regions.

 The result has been an increase in spot water prices in the irrigation operations. While there is sufficient water available for sale within the broader irrigation, system the matter remains a key issue for the team, given the increase in spot water price.

 Separately Australian Agricultural Project ended the quarter with cash amounting to $1 million compared to $632,000 for the same period last year. The increase in cash stems from a bigger harvest in 2019 compared to 2018. Operating surplus for the quarter stood at $362,000 and expected to continue increasing through to March 2020.

P2P Falls On Challenging Year Concerns

P2P Transport Ltd (ASX: P2P) fell 20.8% after acknowledging it had a challenging 2019 fiscal year depicted by a disappointing performance from the core business. A toxic debt structure, as well as short-term amortization, are some of the issues that the company struggled with throughout the year.

 Amidst the challenging year, the company saw its revenue increase by close to $31 million thanks to acquisitions carried out in the year. The acquisition of the BWHL was the biggest driver of revenue growth in the year. With the acquisition, the company’s network grew to over 2,000 vehicles from 1,400 vehicles

 Revenue growth allowed the company to post a record positive EBITDA of $0.8 million, a major improvement from a net loss reported the previous year. Net loss for the full year shrunk to $21.8 million from $37.9 million reported in 2018.