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10/09/20

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Post #: 47255153
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Originally posted by Timetotrade: ↑

Let's also put the cash deficiency into perspective.

Currently there appears to be a current asset deficiency of $12m. So IMO they need to raise that amount just to get them to a NIL position of current assets over current liabilities that have to be paid at some point this year.
That $12m is approximately 41% of the current market capitalization of $29m of the company.

So if they went to shareholders to try to raise that money, they would have to offer a discount to the current market price, let's say 15%. That would be seeking to issue shares @ 3.4c. To raise $12m it would be necessary to seek to offer 1 share for every 2 currently owned. I am not sure that an issue of that dilution is even permitted. And I think that if they were permitted to do so, that if they tried, the market price of the current shares would collapse to below that issue price.

Alternatively, they could try making a placement of that magnitude. The current shareholders would be really peeved to be diluted that much.

Chance of raising those funds in this current market at that price IMO is virtually non existent.

So how is the company going to raise funds to remain liquid this year?

Expand

so the retailer shareholders selling their small parcels are more on the money than the insiders ?

Everyone is overly hung up on the Normal Li and John Florey era, that is well and truly in the past and change is already being implemented by the new team.

What I will say though, is the new Management team could adopt a more regular approach with regards to market condition updates.

All of that is off point though, as to which minority holders are driving the price action at the moment

Originally posted by Timetotrade: ↑

Let's also put the cash deficiency into perspective.

Currently there appears to be a current asset deficiency of $12m. So IMO they need to raise that amount just to get them to a NIL position of current assets over current liabilities that have to be paid at some point this year.
That $12m is approximately 41% of the current market capitalization of $29m of the company.

So if they went to shareholders to try to raise that money, they would have to offer a discount to the current market price, let's say 15%. That would be seeking to issue shares @ 3.4c. To raise $12m it would be necessary to seek to offer 1 share for every 2 currently owned. I am not sure that an issue of that dilution is even permitted. And I think that if they were permitted to do so, that if they tried, the market price of the current shares would collapse to below that issue price.

Alternatively, they could try making a placement of that magnitude. The current shareholders would be really peeved to be diluted that much.

Chance of raising those funds in this current market at that price IMO is virtually non existent.

So how is the company going to raise funds to remain liquid this year?

Expand

FOD Price at posting: 4.0¢ Sentiment: Buy Disclosure: Held
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Last 33.5¢		Change 0.005(1.52%)		Mkt cap ! $63.68M

Open	High	Low	Value	Volume
33.5¢	33.5¢	33.0¢	$1.967K	5.906K

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33.5¢	18317	1

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1	3000	0.335
1	2272	0.330
1	10557	0.305
1	10169	0.295
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0.340	19106	1
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