They are on life support. 789k cash left. 4.5m in debt, noting the 500k from AGAA to cover the care and maintenance of red october, is the only thing that is keeping the door open. 3 months for them to consider a transaction... The coffers will be almost drained at that point.
There is a risk then, that if they wanted to play hardball, they would allow MAT to go into administration/ negotiate a rescue deal then.
Otherwise, there is no other path, but a CR to provide the cash to survive. What if any deal, was to take 6 months ? we dont have 6 months of cash. Potential of a suspension, in lou of being in the gray zone. Between insolvent, and a potential cash deal. ?
For that risk, i am exiting, with view of a trade entry lower that represents that CR risk.
MAT Price at posting:
3.8¢ Sentiment: None Disclosure: Not Held
