Ann: March Quarterly Activities Report, page-162

Won’t go belly up at all, can be resolved with a capital raise as you say. But @Ryzie, how did they let it get to this point? You never, ever want to raise capital in these sort of circumstances. People start selling in anticipation which just drives the VWAP lower and usually increases the discount. FWIW I think they’ll need to raise a decent amount (more than $10M) as it needs to cover 1. the second IDSB tranche, 2. ongoing growth of payments to merchants and 3. their normal operating costs. Remember, taking out payments to merchants, their other expenses (staff/admin/product etc) were -$4.3M this past March quarter, and were -$5.1M in the December quarter. Suddenly $10M doesn’t go that far?

I’m now almost at the point where I think they must have an absolute cat to pull out of the bag to stun everyone - as it seems mystifying that a management team who have been generally very prudent (merchant/customer choice, low marketing spend, etc) could get to this point. We’ll see! However I think the general radio silence now has an explanation - back in the June 2021 quarterly they said they were looking at wholesale funding options in the following quarter. It must have become apparent they were too small or too new to qualify. But that just makes the IDSB purchase commitment even more wild. That was the day my sentiment changed, the lack of a huge cash pile was a big loss for a company of this size. Now it’s apparent why.