Ann: Entitlement Offer to Raise up to $10.8 Milion, page-92

Yes, what's not clear to me is why have they drawn the $4.3m operating facility. To pay for the q3 purchases of $6.5m (patents, trade marks, land etc). Didn't they have cash to cover those? Also, the facility is july23 to july24. When have they drawn it? Why is the facility expiring in july24? In the half yearly they didn't say anything about it in the subsequent events section.
The $325k to buy interests in distributors is the same amount to buy the French one, which was due to settle in October. Do they need to raise that money as well?
I have always said that $28m real or not are peanuts in an industry that still needs to spend a lot to be able to grow. So if the 28m are real and they didn't borrow or raise anything they would have spent, by july 24, ~$14m for the new factory (includingthe land bit), plus $6.5m for the q3 23 purchases. And since there is the possibility of not generating cash flows from operations for the next 3 quarters, they would have been left with 6 or 8 $m by july 24. Which is not a very solid position, acceptable if the economy is ok and they can generate strong cash flows. With 6 or 8m cash they couldn't take advantage of any opportunity or need to fund growth, such as factory in thailand or simply start funding more R&D and needed inventory. In times or uncertainty suppliers start to demand earlier payments and you can see that in the balance sheet, this causes the working capital to grow simply to maintain the same level of sales, let alone grow them. Inventory alone to grow sales to 140k units will have to grow by more than that 6m and its all good if they can finance that with cash flows, like it should be, but the outlook doesn't seem to indicate that. To conclude, whilst there is always the possibility that the accounts are bogus, I think that they will need plenty of cash to fund all the activities needed to reach their targets and they will have to finance those regardless of the economic downturn expected in cy24; so raising cash is quite sensible. It is obvious that the bank wasn't interested in providing the capital (for reasons i do not know), so they ask the shareholders.