KCQ - Equity Raising

As equity raising has been one of the primary sources of income, my company’s financial statements and accompanying reports go into great detail about how this equity has been raised.  This is a big part that I do not fully understand and don’t think I will at this early stage of my study.  I think investing, shares and equity funding is a discipline of study in its own right.  Here are some terms I’m yet to wrap my head around:

·         Conversion of loan funds to issue shares

·         Equity funding by a renounceable rights issue

·         Share options

The Statement of Cashflow really highlighted for me the amount of money the company raised through the issue of shares. This contributed to the huge cash movement and position from 2012 to 2013. This increase in cash enabled the company to earn further revenue by way of credit interest on its bank account balances. In 2013 the Interest income increased by 90% from the previous financial year to $108,505. In turn their total finance costs had decreased.

 

The Annual Report features a summary of the equity funding events that occurred during the year in the Directors’ Report section: