DFNN plans to raise P450-M through private placements

DFNN [DFNN 3.00, down 4.8%] [link] said that its board has approved a plan to raise P450 million through private placements. The company plans to use the proceeds to settle debts, venture into cybersecurity and AI, and buy or develop new gaming platforms.

 

MB bottom-line: DFNN is a stock that has the ability to grow and scale at an incredible rate, as its product is theoretically more like that of a traditional software offering where the cost of developing the software is largely upfront and making and selling additional copies of that software is basically “free”. I get the impression that this private placement is more about balance sheet management than it is about growth, but I’m keeping an open mind. I’m suspicious of anything that name-drops “AI” in a disclosure, mostly because “AI” is the king of buzzwords right now in terms of attracting the most interest with the least amount of associated accountability. There’s no shame in raising equity to pay down debt. It’s done all the time. Just saying that this is a pretty broad use of proceeds, and I’d like DFNN to get a little more specific.

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