Yes - that is accurate. The money has to come from somewhere. In retrospect they should have added some words around "general working capital" when they announced the raise. I think you can lock in another -$5M (minimum) this current quarter which will leave the cash on hand balance at $20M. That makes it problematic to order the machinery for the tripling of production. Phase 1 was around that same amount so I guess they will need in the vicinity of $30M for the expansion plus they will need something left in working capital. IMO that is why they need to get phase 1 up to nameplate and cashflow positive. I wouldn't want to go replicating something that is still losing money. I think it will be a good test of management. BTW - pretty happy with that raise at $2.20 - brilliant in retrospect. All IMO and DYOR
E25 Price at posting:
$1.10 Sentiment: None Disclosure: Held
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