The Alcidion Group Ltd (ASX: ALC) share price has returned from its trading halt and sunk deep into the red.
At the time of writing, the healthcare technology company's shares are down 27% to a 52-week low of 7.1 cents.
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What's going on with the Alcidion share price today?
There have been a couple of catalysts for the weakness in the Alcidion share price on Wednesday.
The first has been the company undertaking a capital raising. According to the release, Alcidion has received firm commitments to raise $5 million through an institutional placement. These funds are being raised at 7.5 cents per new share, which is a 23% discount to its last close price.
In addition, Alcidion is aiming to raise a further $1 million via a share purchase plan at the same price.
These funds are being raised to maintain a strong balance sheet so it can execute on its market opportunities and drive ongoing revenue growth.
What else?
The company's quarterly update doesn't appear to have gone down too well with investors and could also be weighing on the Alcidion share price today.
Alcidion reported new total contract value of $2.5 million for the quarter, which is up 39% on the prior corresponding period. This means that total contracted revenue was $35.3 million at the end of the quarter, which is up 12% on the prior corresponding period.
And while management has maintained its expectation to be EBITDA and operating cashflow positive in FY 2024, its first quarter performance is certainly not supportive of this.
Alcidion revealed quarterly cash receipts of $6.4 million and negative operating cash flow of $8 million. A big portion of this outflow relates to staff costs, which came in at a lofty $8.5 million.
This reduced its cash balance from $14.6 million at the end of June to just $6.5 million. Though, this excludes the money raised from its capital raising.
