For what it is worth I have spoken of my fears of administration to Rodd several times, including once on the phone several months ago when he was still speaking to me. I thought it was a genuine concern because the way things were going back then, no income, company running costs, ongoing expenses at 4TS, low cash reserves it appeared to me to be a real threat.
I can categorically promise that Rodd said "that will never happen". They are his exact words. As to the plan he has to prevent it from ever happening i have no idea. Thankfully LUM have very little debt so it isnt going to be a creditor demanding money that forces liquidation moreso a case of LUM losing the ability to generate more funding from investors which will force the doors shut. If LUM were to go for a capital raising now realistically they would be lucky to get 4c!
Administration is unlikely in my opinion because thankfully they dont owe much money to anyone. However dilution is going to be the killer. At the present time LUM only have 121 million shares on market, to fund ongoing operations this is going to have to increase markedly. 4TS is the key, success there and the signing up of a blue chip client will prove to the market that LUM's product is viable and im sure we will see the shareprice back over 10c. But why oh why cant they find an advertiser for 4TS? LUM have promoted an article on their own website highlighting the strong demand for outdoor advertising space in the 4TS vicinity and yet 8 months down the track they still cant find an advertiser.
It is quite a sad fact that LUM run their business behind smoke and mirrors. Investors have to second guess what is going on all the time, their disclosure is appalling. We dont even know for sure who is to blame for making an issue out of the council permits in Turkey, and we dont even know the company's honest opinion as to why 4TS is struggling, when in fact advertisers should by rights be fighting over the space.
LUM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
