mack, they foresaw the cash problem to the extent that they (the directors) lent the company $750k. They must have been hoping that it would have only been short term so a capital raising wouldn't be necessary. Otherwise they would have raised cash at 8c.
Now they have the problem of the loan on the balance sheet. I should imagine that the capital providers want to see an agreement that the loan will only be repaid from operating cash flows and that Seaspin will never use its rights to appoint administrators if the loan cannot be repaid. Alternatively, they could be requiring Seaspin to convert the loan into shares.
Anyway, here's hoping the directors' hope will come to pass.
AYN Price at posting:
3.7¢ Sentiment: None Disclosure: Not Held
