The Cirralto Ltd (ASX: CRO) share price has been on a rollercoaster this past month. Being in the payment provider space with its business-to-business (B2B) solution, Cirralto has gained much attention recently.
It seems, due to the recent amplification of interest in buy now, pay later (BNPL), Cirralto has been busy. Let’s take a look at what has been going on.
Cirralto’s opportunistic capital raising
On 16 February, the Cirralto share price hit an intraday high of 21 cents, a mind-blowing 200% higher than its opening low of 6.8 cents. As per the responses to the ASX’s capital raising query, Kaai Capital called Cirralto CEO Adrian Floate and proposed a significant capital raising due to the increased interest.
On 18 February, Cirralto decided to halt the share trading ahead of the capital raise announcement. This would come only months after the company’s previous injection of funds.
The following week the company announced its $18 million placement with firm commitments, mostly from institutional investors. Cirralto outlined that the funds would be used to accelerate the development of its payments technology, specifically Spenda and SYNK’D. This would mark the last recent day in the green for the Cirralto share price.
Chairman sells as share price retreats
There are no particular issues with insiders selling shares in a company. There can be many reasons for selling including for personal reasons, funding other ventures, or simply to enjoy. However, depending on what the circumstances are, it can sometimes be bad optics.
In this situation, the Cirralto share price had been falling. On 26 February, Cirralto chair Peter Richards made an on-market sale of $375,000 worth of shares.
It is important to note that during this time, other members of the company’s management team had increased the number of shares held.
Cirralto share price today
At the time of writing, the Cirralto share price is up 4.76% to 8.8 cents. If the share price closes in the green today it would break the red streak that has persisted since 23 February.
Notably, the Cirralto share price has bagged more than 1600% returns for shareholders in the past 12 months. The company’s market capitalisation now resides at $145 million.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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