This is one everybody has to be aware of - I hope the directors have this under control? I wonder how close they are considering the continual requirements to raise capital and what about the stages in-between the the actual raising's being available to the company to use and their expenses being met?
Definition - Trading whilst Insolvent is Illegal.
If you allow new debt to be incurred knowing the company is unable to pay that debt as and when it falls due, a director can become personally liable for the repayment of that debt – and this could lead to a loss of personal assets and even personal bankruptcy.
You must understand the implications of allowing a company to trade and incur debts when it is insolvent and the risk to you and your personal assets.
PLV Price at posting:
3.4¢ Sentiment: None Disclosure: Held
