For a while there it looked like 9 Spokes may have turned the corner. After what appeared to be a double bottom at around 2.2c-2.3c in mid-June and early July, it climbed back to 6c over the next couple of months. Then, sadly, came Wednesday’s trading halt and today’s announcement that the Royal Bank of Canada has cancelled its contract with 9 Spokes to provide a white label version of the 9 Spokes platform.
The share price is down 56.60% so far today to 2.3c with an intraday low of 1.8c. Absolute carnage.
9 Spokes is now looking like a disaster. Their last Quarterly Report disclosed an operating loss of $3,194,000 on revenue of $1,750,000. Cash in the bank at the end of the last quarter was $4,772,000. Expected cash outflows for the current quarter are $4,825,000. It looks like they’re going to need to raise capital fast. In the wake of a cancelled contract with the Royal Bank of Canada, that’s going to be a very hard sell.
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