Multistack Faces Cash Flow Challenges Amid Share Disposal Plans

Quarterly Cash Flow Overview

Multistack International Limited (ASX – MSI) has released its quarterly cash flow report for the period ending 30 September 2025, revealing a net operating cash outflow of A$180,348. Despite this negative cash flow from operations, the company’s cash and cash equivalents remain healthy at A$1.33 million, providing a solid liquidity buffer.

The quarter saw no new equity or convertible debt securities issued, and the company repaid A$27,500 in borrowings, reflecting a cautious approach to managing its financing obligations. Operating expenses continue to weigh on cash flow, with significant outlays on staff costs and administration.

Financing and Related Party Transactions

Multistack holds a non-interest bearing, unsecured loan of A$696,000 from A.C.R. Equipment (HK) Ltd, a related party, which remains unchanged this quarter. Payments to related parties were minimal, totaling A$2,458 for routine commercial purchases, underscoring compliance with ASX disclosure requirements and maintaining transparency in related party dealings.

Strategic Outlook and Share Disposal Plans

Looking ahead, the company anticipates continued negative operating cash flows but is confident in its ability to fund operations for approximately 7.4 quarters based on current cash reserves. Notably, Multistack has announced plans to dispose of its shares in Multistack Australia. This move is subject to mutual agreement, shareholder approval, and regulatory compliance, including an independent expert’s report if required.

This strategic disposal could mark a significant pivot in the company’s business model, potentially unlocking value or refocusing resources. Meanwhile, the company will continue to operate prudently, ensuring ongoing compliance with ASX and corporate governance standards.

Investor Considerations

Investors should note the company’s stable cash position amid operational cash outflows and the absence of new financing activities this quarter. The planned share disposal introduces an element of uncertainty but also opportunity, depending on the terms and timing of the transaction. Multistack’s transparent reporting and adherence to governance protocols provide some reassurance as the company navigates this transitional phase.