re: Ann: Convertible Loan Notes Section 708 C... Ieyasu, so they...

re: Ann: Convertible Loan Notes Section 708 C... Ieyasu, so they raise £5m and have enough cash to last to year end, but even if they get sales of 1,000 units from Germany in the next 6 months they will still need to raise more cash in October before cash gets tight again.

You think that sales of 1,000 units will make it easier to raise cash in October with a rights issue? I do not. Point being that 1,000 units will generate a gross profit of 1,000 x €2,000 = €2,000,000, vs cash burn in a quarter of €5,184,960.

"Net operating cash outflow for the March quarter was AUD 6.6m (GBP 4.4m) which was approximately AUD 2.0m (GBP 1.3m) greater than the two previous quarters principally due to the delay in sales discussed above and the resultant reduction in receipts from customers."

Even sales of 2,000 in the next 6 months would not cover the cash burn for 3 months of it!

After the initial burst of German orders in the first month, however many that is, where do the run of continuous orders come from? Yes orders will continue to trickle in from Germany but not likely in the 1,000's that CFU needs CONTINUOUSLY to keep the company going and make it a good investment case.

I think it will end up not being able to keep raising cash, default on it's loans, then the loan note owners will own the IP and run it privately, cutting the expensive Directors out, cutting staff, making the systems in China for a fraction of the price, ensuring it is going to survive by chucking £100m at it.