"If they don't make $22 million this quarter, by my sums (which could be wrong....please do your own research) the company will still have a working capital deficit at the end of the quarter."
I was thinking that if a proportion of the working capital deficit in my calculation above was previously apportioned to MACA's trade payables then for technical purposes the MACA loan coming into place may well have plugged some of the working capital deficit by moving the liabilities for trade payables to borrowings as well, meaning the company has bought more time by kicking the can down the road.
I don't know what proportion of my $22 million estimate might be reduced by the MACA trade payables to loans conversion but I'd say if the company doesn't produce a net profit this quarter any money raised though the SPP will just be used to plug a hole much bigger than the amount being sought.
The company needs a result this quarter or it's just more good money after bad for equity investors. Esh
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