Ann: H1 FY2020 Appendix 4D Preliminary Interim Report, page-12

A good read for current holders: https://australiandebtsolvers.com.au/research-centre/illegal-trade-insolvent/

Quick ratio (acid test) using estimated $10m cash left as of 31 August and current liabilities listed in the report at 30 June equals 1.67x.

Compare this to a Current ratio (same cash on hand assumption) of 3.58x.

At current burn rate with flat revenues, Quick ratio will go below 1x around late October, early November.

The last cash raise at 20 cents was announced when the share was trading at 38 cents. About 47% discount.

Were the same discount to be offered now with the price at 16.5 cents, the CR offer price would theoretically be 8.68 cents, and raising an additional $11m like last time would require the issue of some 126,666,666 new shares of stock, or a dilution of 84.8%. New total shares out would be 275,907,940.

Stock price would fall to offer price of 8.68 cents giving a new market cap of $23,948,809.

I don’t think they could do this. They would have to consider something like convertible notes, adding long term debt to the balance sheet. This would also place the new debt holders at the front of the line in the case of liquidation. Shareholders suffer either way.

The directors, I would imagine, are not sleeping well about now.