did everyone not read the announcement properly? re-read it. they specifically say that all the non-dilutive funding is going to be used to fund the expansion of the plant i.e. Phase 1, Phase 2, Phase 3 nothing to do with working capital to fund the business operations.
Companies still need working capital (cash) in order to run the business, i.e. staff costs, electricity costs, supply costs etc - this funding was never stated to be coming from the loans they were receiving from the government authorities/banks. They clearly stated it was for expansion plans.
CFO do not have a positive cash flow cycle yet, our expenses exceed our sales so a cap raise was always going to be needed in order to keep the business running.
Further, the announcement stated a few weeks ago that the Sept 4c was going to have sales significantly lower than the June 4c due to Alain having to slow production down to get quality back, which obviously means we have burnt through more cash recently with less sales to off set this.
Read all the info available before you complain
CFO Price at posting:
36.5¢ Sentiment: Buy Disclosure: Held
