signs are not good - suspension of dividend - deferral of vendor...

signs are not good

- suspension of dividend
- deferral of vendor payment

Says they are running tight on cash flow.

Vendor probably didn't have much option other than to take the deal. The company already have 18m used on their bank facility, and a capital raising at these low prices would be highly dilutive. Market cap of $30m and debt over half that, they are in a position of financial weakness right now. They might be able to trade their way out of this as long as the economy doesn't take a nosedive.