Actually, it's not like borrowing money from a bank. You...

Actually, it's not like borrowing money from a bank. You may have missed the 'Going Concern' note in the accounts:

The group has current liabilities of $1,494,197 and has cash on hand of $1,815,388. So, Approx $400k cash on hand once liabilities are paid.

And:

The ability of the group to continue as a going concern is dependent on securing additional funding. So, Pretty clearly states, they need more cash.

So:

SH's have been told a capital raise is required in order for the business to continue as a going concern.

Simples!