Ann: Half Year Report and Accounts, page-61

From my read of the report, they reported a reduction of $4.5m cash for the year, and that was after borrowing $3.5m, so is that an $8m burn for the year?
The report says the dividend cost $500k cash last year after drp. They have $900k in the bank as of 31/12/17, so half that goes to dividends.

I am not a fan of paying dividends from borrowings, which is what appears to have happened here. I would prefer they keep their cash and invest it as they are clearly forging ahead. They would not be the first company to have liquidity problems whilst making a profit and growing. It seems their strategy is to borrow, and they have room on their balance sheet for more debt, but unlike capital, debt needs to be paid back. No-one seems to have asked about their liquidity strategy or when they see themselves as cash flow positive. Banks will want to understand that.
My preference would be for them to issue a million shares (about 1.5% of stock) at $7 to give them breathing space for the next year before sales increase and they bring the new manufacturing plant online.

What do people think? Not concerned about cash? Do they have friendly investors only too happy to fork out cash?