yes correct.. no change to cash if they dont get paid, however every dollar they get paid goes to cash reserves (assuming they have paid all the relating suppliers et)
Further things we need clarity on / or should check are as follows:
1. if they have an overdraft (which i thought they had debtors funding facility meaning they have only have access to cash when they raise an invoice) , in any case- are they in breach of any banking covenants?
2. Are any of the banking covenants tied to market capitalisation?
3. $150M plus of order bool with only $10.0M in facilities will be a tough ask.
I think a capital raise is on the cards...
GLTA
PGX Price at posting:
22.0¢ Sentiment: Sell Disclosure: Not Held
