Multistack International Limited reported a net operating cash outflow of A$196,577 for the December quarter but maintains a solid cash buffer as it pursues the sale of its Australian subsidiary.
- Net operating cash outflow of A$196,577 for December quarter
- Cash and cash equivalents stand at A$1.1 million
- No new financing raised; repaid A$1.2 million in borrowings
- Holds unsecured, non-interest bearing loan of A$696,000 from related party
- Plans underway to dispose of shares in Multistack Australia Pty Ltd
Quarterly Cash Flow Snapshot
Multistack International Limited (ASX, MSI) has released its December 2025 quarterly cash flow report, revealing a net operating cash outflow of A$196,577. Despite this negative operating cash flow, the company ended the quarter with a healthy cash balance of A$1.1 million, providing a buffer to sustain operations in the near term.
The company’s cash position reflects prudent management amid ongoing operational challenges. Notably, Multistack repaid A$1.2 million in borrowings during the quarter, underscoring a focus on reducing debt even as it navigates cash flow pressures.
Financing and Related Party Loans
Multistack did not raise any new equity or debt financing in the quarter. The company continues to hold a non-interest bearing, unsecured loan of A$696,000 from A.C.R. Equipment (HK) Ltd, a related party linked to key stakeholders. This arrangement provides some financial flexibility without immediate interest costs, but also highlights reliance on related party support.
Strategic Move, Disposal of Australian Subsidiary
Perhaps the most significant development is Multistack’s ongoing efforts to dispose of its shares in Multistack Australia Pty Ltd. This move is subject to mutual agreement, shareholder approval, and the completion of definitive documentation, including an independent expert’s report to satisfy regulatory requirements.
The disposal signals a strategic shift, potentially aimed at streamlining operations and improving the company’s financial position. Meanwhile, Multistack has committed to continue operating prudently as a going concern, maintaining compliance with ASX and other reporting obligations during this transitional phase.
Liquidity Outlook
With estimated funding available to cover approximately 5.6 quarters of current net cash outflows, Multistack appears positioned to weather short-term liquidity challenges. However, the company acknowledges that negative operating cash flows are expected to continue for the foreseeable future, underscoring the importance of the planned disposal and ongoing cash management.
Investors will be watching closely for updates on the disposal process and any changes in operating cash flow dynamics that could influence the company’s financial trajectory.
Bottom Line?
Multistack’s cash runway offers breathing room, but the success of its Australian subsidiary sale will be pivotal.
Questions in the middle?
- What is the timeline and certainty around completing the disposal of Multistack Australia Pty Ltd?
- How will the company manage ongoing negative operating cash flows beyond the next 5 quarters?
- Are there plans to replace the repaid borrowings with new financing or capital raising?