SIV Capital Posts $163K Operating Cash Outflow, Holds $8M Cash Reserves

Operating Cash Flow and Financial Position

SIV Capital Limited’s latest Appendix 4C quarterly cash flow report reveals a challenging second quarter for the investment company. The entity recorded a net cash outflow from operating activities of $163,000 for the quarter ended 31 December 2024. However, the six-month year-to-date figure remains positive at $268,000, largely supported by a one-off insurance claim settlement of $500,000 received in the first quarter.

Despite the negative quarterly operating cash flow, SIV Capital maintains a robust cash position with $8.017 million in cash and interest-bearing deposits at the end of December 2024. This liquidity buffer provides the company with an estimated 49 quarters of funding based on current operating cash burn, offering a significant runway for ongoing operations and strategic initiatives.

Convertible Note Redemption and Investment Activity

During the quarter, SIV Capital successfully redeemed its convertible note investment in AMAG Holdings Australia Pty Ltd. The redemption followed the sale of AMAG shares to a third party, resulting in proceeds of approximately $424,900, which included principal and accrued interest. This transaction contributed positively to the company’s investing cash flows and overall liquidity.

Corporate Developments and ASX Suspension

On the corporate front, SIV Capital continues to evaluate a select number of acquisition prospects. The company’s acquisition strategy remains focused on targets with profitable histories and growth potential, ensuring compliance with ownership requirements to preserve tax losses and maximise franking credits.

However, the company’s securities have been suspended from ASX quotation since 18 December 2024. The ASX determined that SIV Capital’s operations were insufficient to warrant continued quotation, citing breaches of Listing Rules 12.1 and 12.3. The suspension will remain in place until the ASX is satisfied that the company complies with the relevant listing requirements and that reinstatement is appropriate.

During this suspension, SIV Capital has committed to ongoing market disclosure under Listing Rule 3.1-3.1B to keep investors informed of material developments.

Governance and Related Party Payments

The report also discloses payments to related parties, including directors’ fees and legal fees paid to a law firm where a director is a partner. These payments are consistent with prior disclosures and reflect normal corporate governance practices.

Looking ahead, the company’s ability to navigate its ASX suspension, execute on acquisition opportunities, and restore investor confidence will be critical to its future trajectory.