Well, you have to stop and wonder why this sudden change in direction from the company. They are in negotiations with a bank financier, and then they change the business model. Co-incidence?
A. If they announce bank financing over the next couple of weeks, the shareholders would be happier , but the company is then in debt with no income for a while
B. By the sounds of it, they do not need bank financing IAW the updated prospectus to launch the smaller batch to orbit, meaning if 90% CR remains, then it's self funded to launch at this stage
C. The bank negotiations may well have been a backup all along, that was never going to be explored unless the free money from the market had stopped..... meaning if you pull out of the CR, they may well then put the company into debt in order to realize the goal.
If it was your startup company what would you do.... go to market for free cash, or get into debt and make the shareholders happy which doesn't pay the bills?
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