It really is crazy. At least this open briefing has shed some...

It really is crazy. At least this open briefing has shed some light on the issues surrounding this company.

When I quizzed Jason about the proposed raising via email, he justified its need by noting that Conti is always on the look out for opportunities to grow. He said it was only a precautionary measure in place so that Conti could grab a hold of something if it arose. An outright lie - this briefing reveals what many thought, and that is that the company has some serious liquidity issues to fund its working capital requirements. But what happened to ABSA, and the working capital debt facility that it provides? Perhaps Conti realise that they can't draw down debt because they wouldn't be able to service the repayments? Hence the need to dilute the stock to death?

The outlook for Ferreira is barely something to write home about - expected to cover costs in FY2013, but no mention of it being a profitable operation.

The writing's on the wall here imo. Will Penumbra be the saving grace?