Cirralto shares were off to a rocky start from the get-go today as the transaction services business released its Q1 FY22 activities and cash flow reports.

Here are the details.

Cirralto share price slides despite 40% revenue growth in Q1

Key investment highlights from Cirralto's Q1 report include:

• 157% increase in cash receipts to A$396k for the quarter, compared to Q1 FY20
• Revenue growth of 41% for Q1 FY22 compared to Q4 FY21 when including all cash receipts
• 36% average quarter on quarter growth over the past 7 quarters
• $19.0 million cash or cash equivalents as of 30 September 2021; plus $2.05 million in net loan receivables.
• Q1 FY22 net operating cash outflows of $2.705 million
• Annualised FY22 revenue forecasts a growth of 114% from the year prior.

What happened in Q1 for Cirralto?

The Cirralto share price slumped despite the company's growth efforts this quarter.

Across the quarter, the company grew its revenue by 41% compared to the year prior. This trajectory equates to an average 36% growth in revenue over the past seven quarters, according to the company.

Cirralto's revenue growth is underscored by consistent customer growth which the company feels will deliver a "projected annual revenue growth from the prior financial year (FY21) of 114%" by annualising first-quarter sales.

The company also appointed Neu Capital as lead advisor for the "establishment of a securitisation style debt warehouse structure".

Cirralto intends to use this collateralised debt structure to support its lending and payment demand that can amount to $100 million per month.

The company's board consequently approved a $10 million capital outlay to "cornerstone [its] debt warehouse, which is expected to grow to $100 million in the coming quarters".

Aside from this, the company also finalised the acquisition of Sydney based fintech company Invigo Pty Ltd.

It has now completed the integration of Invigo's core business services into its wider company structure.

Continuing on the acquisition front, Cirralto also advised it executed a binding share sale agreement to buy software development house Greenshoots Technology in Q1.

During the quarter, the company also leveraged its relationship with Microsoft Corporation in the build of "new scalable cloud native microservices with CPU paid for on-demand".

Effectively, these developments enable Cirralto to process higher payment volumes with its integration partners, such as Mastercard and Fiserv.

In addition, the company finished the quarter with $19 million in cash and equivalents on its balance sheet.

What did management say?

Speaking on the company's progress this quarter, Cirralto managing director Adam Floate said:

The start of the financial year has been very pleasing as we have seen the strategies seeded in the past few years bear fruit. Digesting the Invigo acquisition and launching the BNPL solutions are formative and highlight the next chapter in a very exciting future. The company continues to be focused on growth by both expanding market segments and geographies with the acquisition of strategic customers and by innovating with business models that leverage our ability to manage a value chain through sales, invoicing, lending and payment.

Cirralto share price snapshot

The Cirralto share price has climbed 32% in the past 12 months, after rallying 53% this year to date.

At its current share price, Cirralto has a market capitalisation of $168 million.

The post Cirralto (ASX:CRO) share price slides 8% on quarterly update appeared first on The Motley Fool Australia.

At the time of writing, the Cirralto share price is exchanging hands for 6.6 cents a share, up 3.13%. Despite the gain today, shares in the company have slumped 12.3% over the past month.

Let's run through the details of the Greenshoots acquisition.

eCommerce offering bolstered with Greenshoots

Investors are bidding up the Cirralto share price in early trade after its latest announcement. Already, after only one hour of trade, more than twice the daily average volume has been traded.

According to the release, the company has executed a binding share sale agreement to acquire Greenshoots Technology. The acquiree is a software house that specialises in online retailing technology, providing a white-labelled e-Commerce platform to small and medium-sized businesses.

In the announcement, Cirralto explained that Greenshoots' intellectual property completes its retail solutions capabilities. After integrating its offerings, the company can focus on eCommerce payments and consumer pay-later services. This is in a bid to capture a greater portion of the estimated $50 billion Australian eCommerce opportunity.

Furthermore, once integrated into Cirralto's Spenda ecosystem, Greenshoots will be rebranded as Spenda eCommerce — offering Spenda payment services to its customers natively. If the Cirralto share price is anything to go by, investors appear optimistic for this development.

The transaction is on a 100% all-scrip basis, with Cirralto paying an upfront consideration of $1.5 million. Additionally, a further $3.6 million will be contingent on product delivery and revenue milestones being achieved.

Importantly, the acquisition will add a plethora of eCommerce functionality. This includes multi-channel sales and fulfilment management; integration services and workflows with freight providers and 3PLs; and access to global markets.

CEO commentary

Commenting on the acquisition, Cirralto CEO Mr Adrian Floate stated:

The acquisition of Greenshoots into the Cirralto product portfolio will enable us to immediately service businesses looking for an integrated, powerful eCommerce solution.

Unlike other eCommerce providers, the integration behind the Greenshoots solution means we can essentially 'plugin and play' the service with our existing Spenda solution. The benefit to customers is huge, not only are they able to sell online, take payment and transact smoothly, but the capabilities of Greenshoots IP mean we are able to push out our inside sales feature and delivery partnership channels at an accelerated pace.

Cirralto share price snapshot

The past 12 months have been a rollercoaster ride for shareholders. The Cirralto share price has been as low as 2.9 cents a share and as high as 21 cents a share.

Fortunately, shareholders have enjoyed a 78% gain over the past year. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) returned 25.4% during the same period.

The post Cirralto (ASX:CRO) share price lifts on Greenshoots acquisition appeared first on The Motley Fool Australia.

The Cirralto share price sat at 61 cents, the same level as at last Friday's close and where it has been all week.

The company released an announcement to the ASX saying it would voluntarily suspend the trading of shares while it plans the announcement of its first trade customers under the agreements.

Cirralto is a transaction services business that supplies business-to-business payment solutions and digital trading software.

Let's take a closer look at what has halted the Cirralto share price.

Cirralto's trading halt

Cirralto has initiated a trading halt to ready itself for the release of what might be an exciting announcement.

However, Cirralto stated, with or without an announcement, its shares will resume trading on Friday.

The announcement is expected to relate to Cirralto's first trade customers under its two new partnerships.

Last Thursday, Cirralto announced two separate partnerships. One with Mastercard Asia Pacific and the other with Fresh Supply Co.

The news saw the Cirralto share price gain 14% through the day.

Under their partnership, Mastercard may introduce new sales leads to Cirralto in exchange for a fee and a cut of the profits Cirralto receives from their business.

Cirralto will keep at least 70% of the profits from customers provided by Mastercard.

The agreement will continue for five years. Cirralto's agreement with Fresh Supply Co is also for five years.

Fresh Supply Co works as a data layer that specialises in taking operational farming data and allowing it to be used by the financial sector.

Cirralto will provide Fresh Supply Co with the ability to process payments to agriculture businesses.

The partnership will also allow the companies to use the data captured by Fresh Supply Co to pay farmers at operational milestones.

Cirralto share price snapshot

This year has been a good one for the Cirralto share price.

It is currently 52.5% higher than it was at the start of 2021. It has also gained 510% since this time last year.

The company has a market capitalisation of around $167 million, with approximately 2.95 billion shares outstanding.

The post Here's why the Cirralto (ASX:CRO) share price was frozen today appeared first on The Motley Fool Australia.

At one stage today, the transaction services company's shares were up as much as 25% to 7 cents.

The Cirralto share price has eased back since then but remains 14% higher at 6.4 cents at the time of writing.

Why is the Cirralto share price surging higher?

Investors have been bidding the Cirralto share price higher today following the release of a couple of positive announcements.

According to the first announcement, the company has signed a five-year referral agreement with payments giant Mastercard.

Under the terms of the agreement, Mastercard may introduce potential sales leads and business opportunities to Cirralto and will receive a trade facilitation fee for each successfully on boarded customer. Cirralto will retain at least 70% of the gross profit margin on each customer contract.

Cirralto's CEO, Adrian Floate, said: "We are very excited to announce that we have signed an agreement with Mastercard, with whom we have developed a very strong relationship between 2020 and 2021."

"This Agreement serves as a strong validation of what we are doing while also providing us the opportunity to potentially access a significant customer base. The solutions we will provide to Mastercard customers provide the Company with a fantastic opportunity to rapidly scale its business and grow within Australia and abroad," he added.

What else?

Also giving the Cirralto share price a boost was a second announcement of another five-year referral agreement.

This time it is with data layer specialist Fresh Supply Co. It captures operational farming data from a variety of sources and makes it consumable by the financial sector.

This deal will see Cirralto provide trade finance solutions and integration services to business customers, in addition to merchant on record payment services via existing arrangements.

Management notes that providing the agricultural industry access to trade finance reduces the risk of non-payment and improves efficiency and cash flow for both the buyer and seller. This enables farmers to get paid when specific milestones are met in the paddock-to-plate supply chain.

Mr Floate commented: "Working with Fresh Supply Co to help Aussie farmers is very humbling. By utilising our flexible payment solutions and the data mining technology intrinsic in Fresh Supply Co's business, we are able to positively impact Australia's Agricultural industry to drive improved cash flow and better business growth for those businesses."

Following today's gain, the Cirralto share price is up 60% since the start of the year.

The post Why the Cirralto (ASX:CRO) share price is zooming 25% higher today appeared first on The Motley Fool Australia.

The Cirralto share price is already in the news today and has closed down 7.3% at 6.3 cents per share after its latest investor presentation.  

Let's take another look.

Cirralto's ups and downs

Long-time investors may be familiar with the Cirralto story. It's a technology investment company based in Australia, which acquires, develops and commercialises tech assets that modernise IT systems.

Data storage, migration and cloud-based computing are all key areas for the company. Its products include PoolBox, Flash Convert, Synk'd and its latest payment service, Spenda.

The company has attempted to enter the buy now, pay later (BNPL) space as a B2B offering over the past few months, which saw its share price surge and reach 12-month gains of 4,810% in March. 

Throughout this period its often seen daily gains of more than 200%, punctuated by significant weekly and monthly losses.

At its high, it raised $18 million in capital to launch Spenda in the BNPL market. After a period of work behind the scenes and share price drops, which perhaps reflected the ongoing investor uncertainty in this company, it upgraded its pay services at the beginning of May.

It was potentially seen as being late to the party after such high initial BNPL interest, and that appears to have hurt trust in the company. The company's latest financial reports show a 25% increase in cash receipts, 12% increase in customer numbers, and 18% increase in merchant turnover.

Still, the Cirralto share price falls.

The company believes Spenda has a market advantage because it can provide payment services cheaper than most of its rivals on the market, and it has a higher level of integration with a range of existing platforms.

It's currently tightly marketing Spenda in key areas, where it hopes to create notable efficiencies in connecting consumers, retailers and manufacturers throughout the payment process.

Foolish takeaway

Despite seemingly positive reports from the company this month, some investors clearly believe it has been overhyped. The Cirralto share price has lost 22% in the past month and has declined on 13 of the past 30 days. 

It's easy to see why Cirralto could drive this kind of hype. It's a company that appears to have many of the right pieces: strong sales growth, cloud-based IT systems, BNPL technology, high profile financial partnerships and a huge market capitalisation for a six-cent share.

But it's also proven a little nerve-wracking, and some director share sell-offs in hard times create an uneasy feeling. It's also been exceptionally volatile in a period that's seen a boom in ASX technology shares, with no shortage of quiet achievers on the index. 

The post Why is the Cirralto (ASX:CRO) share price up more than 3,000% in 12 months? appeared first on The Motley Fool Australia.

At the time of writing, the Cirralto share price is back where it started this morning, trading at 8.4 cents.

Let's take a closer look at today's news from the technology-focused investment company.

Spenda's latest upgrade

Cirralto has upgraded SpendaCollect, SpendaPay, and the Spenda app, with more planned for the remainder of this quarter.

Spenda is designed to facilitate business-to-business (B2B) transactions but is beginning to branch out into business-to-customer transactions.

The Spenda suite now offers what is essentially a buy now, pay later (BNPL) service. It's also newly equipped with Visa Business Payment Solutions Provider (BPSP) and Mastercard Payment Aggregator (BPA), as part of Cirralto's agreements with Fiserv, Inc.

Cirralto says this will speed up its onboarding of customers and allow it to create a merchant rate to increase its profits.

Other new services include electric funds transfers, BPAY, credit card services, and finance or pay by the month (essentially a BNPL service).

The company says it provides payment services at a lower cost than traditional merchants. It says this is likely to be attractive to businesses. Spenda is also said to help bypass the disruption businesses often face when changing software as it works with other systems rather than replacing them.

It also allows for the automation of business ledgers in B2B transactions and increases security by identifying both parties of a transaction.

Cirralto will focus on customers in a few key markets, to begin with.

These include connecting fashion, homewares and specialist retailers to manufacturers; connecting parents to schools and schools to suppliers; connecting food producers to suppliers and food retailers to producers, and connecting vehicle owners to service providers.

Spenda's existing customers will be migrated to the new services over the course of May.

Commentary from management

Cirralto managing director Adrian Floate commented on the upgrades, saying:

The last 12 months has been a transformational period for the company, moving from pure development to launching and commercialising new products…

We have focused our development teams on crafting software that drives improvements for our customers and our customers' customer's. We have entered into new strategic relationships that expand our service capability and, in the past few months, we have developed a payment solution that bundles the most common ways businesses pay each other into a single solution.

Cirralto share price snapshot

The Cirralto share price has had a fantastic 2021 on the ASX so far, despite the fact that today's early gains have failed to stick.

Currently, the Cirralto share price is up 110% year to date. It's also up a humongous 2,733% over the last 12 months.

The company has a market capitalisation of around $171 million, with approximately 2 billion shares outstanding.  

The post What's going on with the Cirralto (ASX:CRO) share price today? appeared first on The Motley Fool Australia.

Third-quarter highlights 

In its update for the quarter ending 31 March (3Q21), Cirralto announced a 25% increase to $294,000 in total cash receipts from customers. The company is still in the testing phase of its payments technology, which might explain the relatively lacklustre growth.

It plans to launch the payments platform on 1 May 2021.

Cirralto used this quarter to put together the pieces it needs to drive growth in the near term. This included recruiting and integrating new talent into the team, optimising operational systems and building market momentum for its Spenda software product.

The company said it had translated into a 1,088% increase in total leads from 35 in the second quarter FY21 to 416 in 3Q21. As well, there was a 121% increase in website session views between the second and third quarter. 

Cirralto is focusing on expanding the capabilities of Spenda. The software includes real-time digital business payment services, debt collection software, a dynamic POS and inventory management system. The company is currently releasing additional features to expand its addressable market and competitiveness. 

Why it could go either way for the Cirralto share price 

Cirralto's quarterly highlights relatively stagnant growth for the richly valued, transaction services business. This quarterly reporting season has been particularly punishing for companies that have not been able to live up to expectations. 

On the flip side, Cirralto has used this quarter to ready its springboard for accelerated growth towards the end of the year.

The launch of its upgraded technology platform, increased brand awareness, previous capital raising, zero debt and increased headcount could all contribute to more growth in the future. 

The post Could this quarterly sink or swim the Cirralto (ASX: CRO) share price? appeared first on The Motley Fool Australia.

Even more perplexing is Cirralto's rise over the last 12 months. An investor who bought shares in the company this time last year would find themselves up by 4,810% today. Even if you bought in at the start of this year, you'd be up by 127%.

So, what's the go with the Cirralto share price? Let's take a look.

Crashing on the pay now, pay later wave

Cirralto may well be the horse left at the start gate amongst buy now, pay later (BNPL) providers such as Zip Co Ltd (ASX: Z1P), Fatfish Group Ltd (ASX: FFG) and IOUpay Ltd (ASX: IOU).

All the above-mentioned company's share prices had incredible gains in February, and Cirralto was alongside them. In fact, in a single day in February, the company reached an intraday high of 22 cents, a 200% gain, without any news having been released.

When the ASX inevitably noticed this unexplained share price rise, the company stated it resulted from social media and market attention because of the BNPL frenzy of the time.

Cirralto provides digital payment services in the business to business (B2B) sphere, with one service that is essentially BNPL for B2B transactions.

Yet, the company hasn't seemed to rise to the opportunity as investors might have hoped. Next to nothing has been announced from Cirralto since.

Capital raising

While investor excitement in Cirralto bloomed, the company took the opportunity to raise some capital.

On February 22, the company announced an $18 million placement with firm commitments, mostly from institutional investors.

While the $18 million was to develop its BNPL technology, aside from a single update, we haven't heard much about it since.

Cirralto share price fall from grace

Between 26 February and 2 March, the company's share price fell by 27.27%.

Cirralto managed to gain 3 cents back when it announced news of an update to its B2B BNPL service, but that quickly petered out with only 0.9 cents able to stick.

The current Cirralto share price is 20% lower than it was at the start of the month, trading for 8.8 cents. Hopefully, any investors who bought at 22 cents are still holding out hope that the company can return to its former glory.

Cirralto has a market capitalisation of around $183.7 million, with approximately 2 billion shares outstanding.

The post Down 20% with no news, what's with the Cirralto (ASX:CRO) share price? appeared first on The Motley Fool Australia.

Some experts believe that bond yields are close to the point that would trigger a bear market collapse in the Nasdaq-100 (INDEXNASDAQ: NDX), reported Bloomberg.

A bear market is a peak-to-trough fall of at least 20%. And if the tech-ladened US share benchmark slumps, it will likely drag many top performing ASX tech shares into the red.

Best performing ASX tech shares more at risk

This ASX sector has delivered the best returns since COVID-19 triggered a market meltdown a year ago. In case you are wondering, there are around 40 ASX tech shares with a market cap of at least $100 million that have at least doubled in price over the period.

These including pocket rockets like the Ioupay Ltd (ASX: IOU) share price, the Pointerra Ltd (ASX: 3DP) share price and Cirralto Ltd (ASX: CRO) share price. These are the three top performers with gains of between 6,186% and 2,600%!

Of course, we can't forget the likes of the Afterpay Ltd (ASX: APT) share price and its other BNPL buddies either.

Bond yield trigger for tech bear market

But the stellar returns for tech shares could be undermined if the 10-year US government bond yield rises by as little as half a percentage point.

That's the assessment of Ned Davis Research, which was reported in Bloomberg. The research firm's model predicts that the Nasdaq 100 will fall by at least 20% if the US 10-year Treasury yield climbs to 2% this year.

The lift in the government bond yield will drive long-term Baa-rated corporate bonds to 4.5%. In such a scenario, the Nasdaq will have to fall 20% or more to stay attractive, all things being equal.

Venerable to vulnerable

Don't be fooled into thinking that the big bounce in share prices of technology shares in the US and Australia are a mitigating force to the bearish prediction.

Large single-day rallies are more common in a downtrend, according to Bloomberg. The start of the tech crash in 2000 recorded 27 sessions where the NASDAQ surged by at least 4% in a day.

This compared to just six in 1999 as the tech boom was accelerating.

Rotation from tech to value shares

In another worrying sign, the performance gap between the Nasdaq 100 and the S&P 500 (INDEXSP: .INX) has exceeded that of the tech boom!

But what may be bad news for tech shares may be good news for the rest of the market. The S&P 500 didn't hit its record high until 14 months after the Nasdaq 100 tumbled in March 2000.

The post ASX tech shares cowering in shadow of NASDAQ bear market warning appeared first on The Motley Fool Australia.

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.

The post What is the go with the Cirralto (ASX:CRO) share price? appeared first on The Motley Fool Australia.

So, what is the trading halt for? For a change, it's not about an ASX price query.

More money, please

Cirralto requested the trading halt in relation to a proposed capital raising. This comes after the last few days of mind-blowing trading volume.

As reported yesterday, Tuesday and Wednesday's trading volume was 352.5 million shares and 283.4 million shares respectively. For comparison, last Thursday and Friday only experienced 13.7 million and 17.5 million shares of volume.

It would be no surprise that the company would seek to take advantage of the elevated Cirralto share price interest. However, this capital raise comes less than 3 months after the company's last capital raise.

As we noted on Tuesday, Cirralto's low cash flows from operating activities require it to rely on other forms of financing. In November last year, this took the form of a $2.8 million placement.

As reported in the company's latest quarterly, Cirralto had a $1.029 million net outflow, excluding the capital raise.

Riding the buy now, pay later wave

Over this week, many small-cap shares have experienced monstrous price rises. Speculation over the buy now, pay later (BNPL) sector continues to rage, as the instalment payment system thrives globally.

Recent beneficiaries have included the following:

• IOUpay Ltd(ASX: IOU) – a recent BNPL entrant to Malaysia, up 257% in the last month.
• Fatfish Group Ltd (ASX: FFG) – a tech investment firm that holds a stake in a recent Singaporean-based BNPL entrant, up 326% in the last month.
• Zip Co Ltd (ASX: Z1P) – Afterpay competitor with global operations, up 104% in the last month.

Cirralto is playing catch-up, with its share price rising 60% in the last month.

When will the Cirralto share price trade?

Cirralto stipulates shares be halted in the trading halt request until either Monday 22 February or once the announcement is released to the market – whichever comes first.

For the time being, shareholders will have to sit tight for the capital raise details.

The post Why the Cirralto (ASX:CRO) share price is in a trading halt appeared first on The Motley Fool Australia.

The Cirralto share price had closed at 9.8 cents yesterday afternoon after recording a sizable 30% rise over the day. But this morning, it opened at 16 cents a share and shot up as high as 21 cents. That represents a 114% rise over yesterday's closing price.

As we reported yesterday (and which remains unchanged today), there has been no major news out of the company that might clearly cause such a dramatic move in the share price.

However, saying that, ASX data shows that the trading volume for Cirralto shares remains off the charts. Last Thursday and Friday saw 13.7 million and 17.5 million shares in the company change hands respectively. Yesterday, 352.5 million shares were traded. Today, the number is standing at 283.4 million shares at the time of writing.

Cirralto: Yet another ASX speeding ticket

These moves have drawn the attention of the ASX itself. Yesterday afternoon, the stock market operator issued a 'please explain' speeding ticket to Cirralto in response to the massive surge in share price and trading volume. Asked if the company had any idea why this was happening, Cirralto responded by stating:

The company notes recent market, social media and investor focus on ASX listed companies that have technologies associated with payment and merchant services.Other companies in the sector such as Openpay Group, Ioupay Ltd and Zip Co Ltd appear to have also experienced recent material share price increases.

This is true. Zip Co Ltd (ASX: Z1P), Openpay Group Ltd (ASX: OPY) and IOUpay Ltd (ASX: IOU) have all experienced similar moves over the week so far. The ASX has issued Zip and IOUpay with speeding tickets this week as well. Both companies have also denied any knowledge of any possible cause behind the dramatic spikes.

The post What's going on with the Cirralto (ASX:CRO) share price? appeared first on The Motley Fool Australia.

With no news out from the company, let's take a look at recent announcements and the space that Cirralto operates in.

Buy now, pay later boom!

You guessed it! Cirralto is another high flying buy now, pay later (BNPL) provider. Over the last couple of days, a number of ASX-listed BNPL shares have received an influx in interest. Whether the market has a new-found spur in optimism for the sector or just pure speculation, we have now seen the following shares race to new heights:

• IOUpay Ltd (ASX: IOU) – a recent BNPL entrant to Malaysia, up 259% in the last month
• Fatfish Group Ltd (ASX: FFG) – a tech investment firm that holds a stake in a recent Singaporean-based BNPL entrant, up 156% in the last month.
• Zip Co Ltd (ASX: Z1P) – Afterpay competitor with global operations, up 126% in the last month.

Cirralto offers digital payment services for business to business (B2B) transactions. One of these offerings is an instalment payment service that is essentially a BNPL between businesses, rather than for consumers. The product at the forefront of Cirralto's campaign is its 'Spenda' software solution – integrated with Xero, Myob, Quickbooks, WooCommerce, and more.

Recent Cirralto business activities

The company provided its quarterly activities report for the December ending quarter on 28 January. Cirralto reported quarterly revenue of $329,943 – an increase of 84% from the prior period.

Additionally, Cirralto highlighted agreements made in December with global payment providers Fiserv, Visa, and Mastercard.

As a result of the low cash flows from operating activities, Cirralto also tapped the market for a capital raise of $2.8 million during the period, bringing its cash balance to $3.95 million as of 31 December 2020.

Cirralto share price snapshot

The Cirralto share price at the time of writing is up 29.8%, trading at 8.7 cents a share. In the last 12 months, the share price has appreciated by 1800%. For comparison, the biggest ASX-listed BNPL player, Afterpay Ltd (ASX: APT) increased 284% during the same time frame.

Cirralto's market capitalisation is now $115 million, making it a small-cap stock.

The post The Cirralto (ASX:CRO) share price is hitting 52-week highs today appeared first on The Motley Fool Australia.

What does Cirralto do? 

Cirralto offers a Software as a Service (SaaS) that modernises business IT systems. This involves migrating data from current systems to the cloud. Cirralto also implements a client's data into systems that help with areas such as driving scale, improving sales, integrating with other systems and driving down costs. The company has three SaaS offerings including: 

• Spenda, a platform that integrates data in real-time across PoS, inventory, warehousing, sales teams and mobile techs while automatically updating financial needs 
• Flash Convert, which allows customers to migrate data from their current system to the cloud quickly, easily and for a fixed price 
• Synk'd, which enables businesses to connect applications together to remove repetitious data entry and automate information exchange

Cirralto share price slammed

Interestingly, the company announced its quarterly report at 10.50am. Following the brief rally on open, its shares were sharply sold off and are currently down 15% at the time of writing. Here is the run down of its quarterly report. 

Financial highlights 

Its quarterly highlighted a 118% increase in revenue from $82,313 to $179,745 and quarterly Average Revenue Per User (APRU) up 57.5% from $21.17 to $33.40. This quarter included the successful completion of a $2.7 million capital raising and proposed Appstablishment acquisition planned for completion this year. 

The company currently has a market capitalisation of approximately $65 million with total cash at the end of the quarter of $1.98 million. 

Product development 

Early in the quarter the company released a new product, SpendaCollect. This software enables any business to collect debt from any customer. In a retail setting this involves functionality, allowing customers to pay for goods or services either in-store, online or on-the-go through its virtual terminal. For suppliers and wholesalers, this means a custom portal enabling customers to see outstanding invoices which they can pay off using Cirralto's integrated payment collection system. 

During the quarter, the company continued to release product updates focused on scaling the core systems transactional processes capabilities. Its strategy moving forward is to bolster its integration services that support more payment services adoption and exploitation of its competitive advantage in this area. 

The post The Cirralto (ASX:CRO) share price slammed after quarterly report appeared first on The Motley Fool Australia.

At the time of writing, Ramelius's share price is down by more than 5%, while Spectrum Metal's share price has surged sharply by 36.36%.

What do Ramelius Resources and Spectrum Metals do?

Ramelius Resources is a gold mining and production company with its primary production occurring at the Mt Magnet goldmine. It also holds a portfolio of other development projects in Australia and the United States (US).

Spectrum Metals is a mineral resource exploration and development company. Spectrum Metal's key asset is the Penny West Gold Project, one of the highest grade undeveloped gold assets in Western Australia. Penny West is located approximately 150 km south-east of Ramelius' Mt Magnet mining and processing operations and approximately 550 km north-east of Perth in Western Australia.

What are the terms of the takeover agreement?

Under the agreement, Ramelius Resources will offer to acquire all of the issued and outstanding ordinary shares in Spectrum Metals that it does not already own under the terms of an off-market takeover offer. Spectrum shareholders will receive 1 Ramelius share for every 10 Spectrum shares held and cash consideration of A$0.017 per Spectrum share held, valuing Spectrum shares at A$0.15 each.

How will the acquisition benefit Ramelius  and Spectrum?

Shareholders of both companies are expected to benefit from significant synergies between Penny West and Ramelius' Mt Magnet operation.

The acquisition of Spectrum is in line with Ramelius Resources' philosophy of acquiring assets within a radius of existing production hubs that facilitate mining and ore haulage, without incurring significant on-site capital expenditure. The acquisition of Spectrum Metals will allow Ramelius Resources to add high grade JORC Resources of 355,5001 oz to its current asset base and provide an opportunity to introduce an additional ore source to its processing facility at Mt Magnet.

Penny West is said to offer significant exploration potential at depth and along strike. An October 2019 estimate for the Penny West Gold Project stated that the total resource at Penny West is currently 799 kt at 13.8 g/t Au for 355,500 oz, including 569 kt at 16.8 g/t Au for 306,800 oz at Penny North.

In FY19, Ramelius Resources produced 196,679 ounces of gold at an all in sustaining cost (AISC) of A$1,192/oz and recorded a net profit after tax for the financial year of $21.8 million. As at 31 December 2019, Ramelius held A$87.7 million in cash and gold bullion with no debt. FY20 is forecast to be another very strong year with gold production of 205,000–225,000 ounces at an AISC of A$1,225–1,325/oz.

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