"The company at the end of the September quarter had Trade Debtors of $1.624m and Trade Creditors of only $0.534m."
Not sure what terms are but im sure less than 90days. Cancel the two out and leaves surplus $1.09mil.
Thats $1.35mil + $1.09mil = $2.44mil.
They need $2.1mil
Can they cut the loss from $1.182mil to only $300k?
With the 'delayed revenue curve' who knows? $800k of receipts last quarter and rising. I'd expect more this current quarter. Costs getting lower. Last quarter had redundancies.
I would expect well under $1mil net cash outflow.
They might come a lot closer than you think, and can always issue few shares to Belgravia in addition to cash payment.
If they were going to do a placement to Macquarie or another to fund the payout, I would have thought 3B out yesterday at latest.
If they were going to rollover, again I would think they could/should announce yesterday. Otherwise its technically in default before asx open on tuesday.
Only really leaves a cash payment. Maybe trying to secure a very small bridging loan?
CEO?S COMMENTS
?We are currently in negotiations with a view to resolving payment of the convertible note that becomes due in January and at this stage we are not expecting to have to raise additional capital. Intermoco is also in discussions with Energy Mad Limited concerning a sale of its shares in that company. No agreement has been entered into at this time, and the discussions may or may not lead to an agreement. Intermoco expects to be in a position to advise the market concerning an outcome of those discussions before Christmas.
(1) "negotiation" implies rollover, but cutting it fine now (2) "not expecting" to raise additional capital. Still leaves window open. Not expecting because they expect to rollover or expect they have cash? (3) "is also" in discussions with Energy Mad. Not connected with paying out the note. However would help. (4) "discussions may or may not" lead to an agreement. Inconclusive? (5) "expects" to advise market prior to xmas. Not a promise or certainty.
They have technically kept all promises to date. An update on Energy mad, the contract pipeline and the con note would be great. But im sure they have the note covered one way or another.
Cutting it fine time wise, but it only take a few signatures over the long weekend and the note is rolled over before maturity.
Possibly with full or partial cash settlement.
With the initial cash and the recievables, I'd be shocked if INT didnt have well over $1mil cash. Perhaps pay the note down from $2.1mil to $1mil, extend for a year, increase the interest and alter the conversion price.
A growth company like INT isnt going to find themselves in voluntary administration over $2.1mil with cash in bank, Macquarie on their side and increasing revenues coming in.
AHL Price at posting:
0.8¢ Sentiment: Hold Disclosure: Not Held
