Shareroot sticks with free data-sharing trial model, stock falls 50%
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Stock in data sharing company Shareroot fell 50 per cent after it revealed yet another free trial for one of its products.
The company has signed up another St Vincent’s Hospital affiliate to trial its MediaConsent product, a service that allows a person to share a range of data yet control who has access.
Shares fell from 0.2c to 0.1c on Wednesday morning. The 52-week high is 0.8c.
MediaConsent was soft-launched in September last year and has signed up six organisations for free trials.
The latest outfit to test Shareroot’s product is Cancer Trials Australia which works out of the Victorian Comprehensive Cancer Centre, a St Vincent’s affiliate.
The trial initially will look at how people involved in clinical trials want to share and control data, from social media to that from personal devices.
But the problem is that Shareroot needs to start making money from its products.
The latest financial data is the September quarterly report, which showed a cash burn of $648,000 and cash in hand of $1.4m.
A $780,000 capital raising from sophisticated investors in November covered a $500,000 acquisition it made in the same month, but without another cash injection Shareroot may need to raise more money before the end of March.
A share consolidation reducing the total stock on issue by 30:1 by mid-February may help lift the stock off the depths it’s now plumbing.