financing, page-6

Think of it this way.
The factoring facility is to speed up the receipt of cash once the good has been sold.
This is working fine. I don’t think we can infer from Fridays announcement how much they have drawn down/used this facility.
We do know that they were obtaining US$1m in revenues as per the comments in the last quarterly. So this cash would have been received already and fed into the manufacturing cycle again

The purchase order facility is funding to manufacture goods.
I don’t see this as a termination of the negotiations (remember it was never finalised in the original announcement), just that they are working through the issues.
Because its not ready, and the company have orders that they need to satisfy, they needed to borrow some money for the short-term, and what better idea than going to your major shareholder.
The terms will be favourable IMO, and not only that, its only a less than a 3 month loan.

What we read from this is that they have $2m cash shortfall that they need to fund... which means they have $2m worth of goods that they need to manufacture.

If BRT can get over these hurdles for the remainder of the year (all the profit for the year will come in the Q4 report) with regards to the high levels of gearing, then things should be alot smoother next year when they have had 12 months of the manufacturing cycle as a consolidated entity.

Cheers
Livas1