Ann: EKF Issues Financing Letter of Interest, page-30

A bad capital management decision would be to conclude "they've got +10m in the bank!", then let the good news roll, share price rallies and inevitably pulls back a bit (or a lot, who knows), and then be left with no immediate news, a desperate balance situation (say $5m in bank or so). Now you need a big discount to win over investors who are in command.

Part of good capital management is making sure you have a big buffer for the inevitable surprise down the track. It's not just about how frugal they are with their expense budget, it's also about when, how much and why they raise. If they're raise soon but its paired with good news, minimal dilution and for a good purpose I will chalk it up as another demonstration of good capital management, even if it means raising when they've got $10m on balance sheet.