This prospectus is only seeking to raise $3. It seems like a preparatory action to get ready for the $1.1M capital raise.
Snippet... Under this Prospectus, the Company invites investors identified by the Directors to apply for up to 1,000Shares at an issue price of $0.003 per Share payable in full on Application, to raise up to $3.00.
We are aware of the risks facing 9SP but its good to see them spelled out so clearly. Here are some important excerpts.
SUSPENSION While the Company has initiated a strategic review of its capital and operating structure (described in more detail at f. below), it remains uncertainwhether, following the strategic review, the Company will be in a position to request that ASX lift the voluntary suspension.
FUNDING - The good news Based on the Company’s current cash reserves, completion of the Placement and the Company gaining access to the Facility, the Company’s plans and assumptions regarding existing and possible future revenues from business development opportunities, the Directors of 9SP currently expect the Company to extend its cash runway for at least a further 15 months from funds raised from this Placement and Facility.
FUNDING - The bad news In either case, there is no assurance that any equity or debt funding will be available to the Company at the required time or be available on acceptable terms. Failure to obtain fundingon favourable terms and in a timely way could have an adverse effect on the financial performance of the Company, including by hindering the Company’s ability to achieve breakeven, or to expand and pursue growth opportunities or pursue any recommendations from the strategic review.
9SP Price at posting:
0.4¢ Sentiment: None Disclosure: Held
