At least they acknowledged some risks in the report. First thing...

At least they acknowledged some risks in the report. First thing they will do in the UK is to raise funds.

Good riddance anyway.

Business Risks
Sufficiency of funding
The Group’s business strategy will require substantial expenditure and there can be no guarantees that the
Company’s existing cash reserves and funds generated over time by the Company’s business will be sufficient to
successfully achieve all the objectives of the Company’s business strategy. Further funding of projects may be
required by the Company to support the ongoing activities and operations of the Group, including the need to
conduct further research and development, enhance its operating infrastructure and to acquire complementary
businesses and technologies.
Accordingly, the Company may need to engage in equity or debt financing to secure additional funds. If the
Company is unable to use debt or equity to fund expansion after utilising existing working capital, there can be no
assurance that the Company will have sufficient capital resources for that purpose, or other purposes, or that it
will be able to obtain additional resources on terms acceptable to the Company or at all.
Any additional equity financing may be dilutive to the Company’s existing Shareholders and any debt financing, if
available, may involve restrictive covenants, which limit the Company’s operations and business strategy. If the
Company is unable to raise capital if and when needed, this could delay or suspend the Company’s business
strategy and could have a material adverse effect on the Company’s activities.
Default Risk – Debt and Convertible Securities Agreement
As announced on 10 September 2020, the Company entered into a convertible securities agreement with Mercer,
a United States based investment group (2020 Convertible Securities Agreement). Pursuant to the 2020
Convertible Securities Agreement, the Company was provided with funding of up to $15,000,000 (Mercer Facility).
Under the 2020 Convertible Securities Agreement, a total of 6,325,000 convertible notes were issued in two
tranches (representing drawdowns of A$5,750,000) (Convertible Notes). The Company has obligations to either
repay outstanding amounts owed by the Company, or issue Shares upon receipt of a conversion notice. As at the
date of this Report, a total of 4,225,000 Convertible Notes have been converted into Shares and the balance of
2,100,000 Convertible Notes remain on issue. As announced on 2 February 2023, the Company and Mercer agreed
to extend the maturity date of the 2,100,000 convertible notes on issue from 24 November 2022 to 1 February
2024.