I don't read minds, I read numbers. I even did a whole detailed post at that time explaining my rationale of them needing over $20m to get though 12 months.
End of Q4 21 they had 1.6 quarters of cash left after burning through $4.4m in that quarter. What they also knew at that time, was they were going to lend millions to SSH (despite the company being insolvent). When any rationale investor looks at this, they expect any cap raise to cover at least 12 months.
There is not a single
plausible scenario where CPH directors did not know they needed a bucket load more cash than $5m.
Roll on Q1 22, which was the time to rove they only needed $5m and that cash burn was magically going to disappear. As expected, the financial position had deteriorated with only 1.4 quarters of funding remaining and $5m cash on hand.
Here's a question for you
@stevenjd and
@surfthemarket: how much cash do you predict CPH used on operations in Q2, and how many quarters of funding do you expect to see in the 4C when (if) it is released this month?
In any case, they cannot afford their previously announced commitment to close the deal with SSH without raising capital. It was US$1.7m finance upfront, plus another US$1.0m on closing (almost AU$1.5m). So many hairs on this SSH deal, but you should take this $1.5m into account when considering the capacity to fund the business.
Start with $5m
Reduce cash burn to $3m (optimistic given they are announcing $12,000 purchase orders as newsworthy)
Leaves $2m (0.67 quarters of funding) - this would mean CPH run out of cash in August
Subtract $1.5m for SSH commitment
Leaves $500k (0.167 quarters) - or about two weeks
The idea CPH can become cash flow positive is an illusion. The "global markets" don't actually exist, because in most parts of the world their "products" are still illegal. Even when they're not, the regulation is significant and CPH will never profit in this environment, but the BOD will.
