ASX tech Stocks: Limeade drops 12pc after American Airlines terminates contract
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Employee well-being software provider Limeade (ASX:LME) dropped 12.65% today after losing a contract from top-10 customer American Airlines.
American Airlines terminated their contract with the company on Saturday.
Limeade said if the termination is not reversed, it will take affect from 1 January 2022.
The contracted annual recurring revenue (CARR) for the contract as at 31 August 2021 was US$1.9 million.
But it’s worth noting the company recorded revenue of $26.9 million in H1 FY21 alone, and its guidance is still floating around $50-53 million in revenue for the year.
Limeade said that the company’s procurement department explained the termination is part of a corporate cost-cutting initiative due to financial challenges associated with the COVID-19 pandemic.
Elsewhere, laser technology company Silex Systems (ASX:SLX) has failed to impress shareholders with a $33 million placement designed to advance its uranium enrichment pilot demonstration project.
The project is taking place at SLX’s 51% owned US-based exclusive licensee Global Laser Enrichment ‘s (GLE) Test Loop Facility in the US.
The company’s share price dropped 8% after it announced it will issue around 26 million new shares at $1.27 per share.
“This equity raising secures Silex’s funding through to 2024, to further advance our SILEX enrichment technology commercialisation activities and to focus on the Paducah uranium production opportunity being planned by US-based exclusive licensee GLE,” CEO and managing director Michael Goldsworthy said.
“With the outlook for nuclear power continuing to improve around the world and the demand for uranium, enriched silicon and other isotopes increasing, Silex is well placed to respond quickly and efficiently to opportunities as they arise.”
Silex is also offering a Share Purchase Plan (SPP) to eligible shareholders to raise an additional amount of up to $7 million at an issue price of $1.31 per share.
The funds will also be used for emerging opportunities in advanced nuclear fuels such as the HALEU fuel for next-generation small modular reactors – as well as developing zero-spin silicon for quantum computing fabrication.