Ann: Reciept of Placement Funds from Directors, page-52

The company isn't on the brink (now) but that's only due to the funding received from the recent share placement.

I don't know if you follow Tesla but much is being made of their target to meet 5,000 Model 3 cars produced per week by the end of June. The reason so much focus is being put on this is for simlar reasons to AHZ - the company hasn't become sustainably profitable yet and constantly relies on capital raisings (many of which were supposed to be the last one).

When the company constantly relies on capital raisings to keep going then the market wants to believe that they will meet future targets for growth. Tesla have done well in that most of their capital raisings are done at prices that were higher than previous ones. AHZ shareholders would be forgiving if this were the case here, but the share price keeps going down so every capital raising is dilutionary and disappointing.

In both instances the market has become frustrated with negative issues with their company performance and their management. Big promises are being made to calm down the investors, so big that I think that shareholders will be very angry if they are once again disappointed with a failed promise or missed target. This is evident already with AHZ - look at the share price now, and that's whilst there is still hope that this quarter's targets will be met. If they aren't then all faith will be lost in management, especially given that WP sacrificed his reputation (his own words) to have go for that last share placement.

With no faith in management targets the share price suffers and capital raisings don't succeed (like the most recent one for AHZ which raised $2.24 m less than hoped). This is not a small thing. Hopefully management have learned their lesson, though it's something that they should've known all along. That's why we pay them.