Ann: Interim Working Capital Funding Completed, page-120

I would be amazed if Mr Kabunga wasnt behind it. IMO the only person/persons who would participate in such a funding facility are those who have a significant vested interested and are attempting to stave off dilution at any cost and bamboozle everyone with the 5 cent conversion.

Any other investor wouldn't participate in this. If you really wanted the equity upside then you would just put the money in now into equity. IMO this is nothing more than a prop up and I would imagine that this being the case, the major shareholders wouldnt grant security over the assets for only a $1 million.

This is what amazes me, all the celebration over $1 million !! I'm sure there were fees incurred also...

I could understand given how hard the market is for the management to grant security over the assets for $3 - $5 million but $1 million? Just for a minute stop listening to the line about "tying us over until the options are converted".

The facts are :

Dec Qtr the company spent $2.8 million or the equivalent of $933k per month which was way above the forecast.
They forecast $1.648 million for the March Qtr and spent $1.923 million or $640k per month.
They themselves forecast $1.864 million for this quarter ($621k per month) and they only had cash of $1.253 million.

These are the facts. The company would be severly under water IMO by their own forecasts now at the time of the money going in. According to their forecasts over half of the million is spent already and what they are going to last until the end of December?

None of this mathematically adds up.

IMO the company is cum raising again today . We are already over a week into the first month of the next quarter. Even if they got the cash burn reduced to $400k (which imo is extremely unlikely given the history and forecasts for this quarter just gone ) you can see by the above that the company wil basically be out of money by the end of this month!

The continual discussion almost with a degree of certainty of option exercises is IMO both premature and misleading. The options are barely in the money and they have almost half a year to run, anything could happen to the price by then.

IMO this is a massive gamble by management. Trying to raise the next lot of funding now that there is a secured creditor just became a whole lot harder. Why anyone would encumber the company when they could just do a straight equity raise baffles me. Unfortunately IMO 'death spiral" funding is probably not an option now as those type of lenders would be reluctant when someone else holds security over the assets.

IMO a funding structure put together out of necessity by a couple of major shareholders to stave off dilution and "promote the 5 cent exercise" number.

IMO though it won't work. In any event the worst case in that event would be take the assets for the $1 million and still remain the biggest shareholders of a "shell company" that has the ability to do another deal. After all for other shareholders to buy control of the asset at with the exisitng cap structure with roughly 1 billion shares on issue it would bne the equivalent of $0.001 per share which is $1 million..

And @sunsetsgirl I love your continual aspertions that anyone negative this stock is me. Well its not. The amount of bashing I received from the cheerleaders telling me I was wrong 9 months ago with where things were headed (when I wasn't) meant that I've had to provide full ID's etc to HC to validate my existence which is fine because I've got nothing to hide. I was a shareholder who couldnt believe the constant "upramping" going on here at the expense of those who may have got "sucked in" when the flaws in the story were IMO clear. Well most of the cheerleaders have moved on now, you'll find them promoting a Cobalt story I uncovered. Its amazing theyve clearly sold out into everyone after posting day after day about how good "the story is". And yet no one holds them to account.

Btw @Peliatan, "Tee hee" was a a favourite phrase used by one of the forum's former favourite posters who's name envoked a certain smell...... I'm pretty sure he was based in Indonesia also ....