In the past month the markets have gone crazy and we are all...

In the past month the markets have gone crazy and we are all looking at the damage it is causing out portfolios.

The silence is deafening for the Board of OBJ. Under the Continuous Disclosure rules of the ASX, they are required to keep the market updated of any information that a reasonable person to have a material effect on the value of the company.

Considering there was a timetable released by the company for the purchase of NS on 18 March, this time has come and gone without any word from OBJ.

Sure, this timetable is indicative, but if it isn't being followed what are the shareholders meant to think? It would seem that under the current markets, the Capital Raising and purchase of NS will become very difficult, if not impossible.

So, what is the next move for OBJ? The first thing to look at is cash, with just $1.6m in the bank.

You can have a look at the cash flow statement in the H1 2020 Report. The company had a net cash outflow of -$1,021k for the six months and this included $777k income from government rebates. You can also check out the Balance Sheet where the Account Receivables are just $336k, while the Accounts Payable are $642k, plus other "contract liabilities".

From all of this, it seems that OBJ may struggle to be solvent by 30 June. Reduit was meant to originally ship on 1 March. This has been pushed back until mid-April, apparently. The current status of the USA and Europe would consider this optimistic, at best. Who wants to spend US$300 (yes, a A$500 cost) on an unproven hair product at times like this? Any income from this product is welcomed by OBJ, I am sure. But let's get real here - things are changing and this Corona Virus is effecting everything and these are extraordinary times. It's not the OBJ's board fault, but it is the world we have to live in.

What are the alternatives if the NS acquisition and associated Capital Raising are scrapped? That means no loan. Reduce staff in Reduit? Delay products? A loan of cash? A CR of $3-5m from Directors (at a suitable discount to 1.5c)? Honestly, nothing would surprise me in the current market. One thing is certain: The current shareholders are just passengers at this point and are along for the ride. If you hold OBJ as a speculative buy, then just wait. If you put in more than that, well, I wish you good luck.