Hey Brian,
Instead of diluting the CR@p out of everyone, why not:
1) freeze all non essential wages, and freeze all directors renumeration
2) sell some assets to bring in some cash
3) settle the Arbitration even if for a little less.
At that point we'd have more cash then the current backing and way more cash then you are intending to raise. Brian/James, really who is going to chuck in more money in untilk this stabilises and you can demonstrate you are back in control?
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