ann out : share placement and spp, page-15

In fairness, probably worth analysing those comments about what happens if the offer is not fully subscribed just a little further in keeping with the context of the offer:

"The purpose of the Offer is to supplement capital to the business to enable it to further implement and execute its business objectives with a primary focus on pursuing immediate sales opportunities, improve production efficiencies, general working capital requirements and continue development projects which provide a platform for generating increased sales revenue...

...Assuming the Offer is not fully subscribed, no existing Options are exercised prior to the Record Date and where the Company raises less than $2.7 million, the company will prioritise its use of funds towards the same objectives but
with a greater emphasis on pursuing immediate sales opportunities and general working capital requirements"

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So they are saying that if the offer is not fully subscribed, they will prioritise funds with more emphasis on:

- immediate sales opportunities
- general working capital requirements (in my books, these are wages and rent and other key operational costs)

And the other two references for use of funds will not be a priority:

- improve production efficiencies
- continue development projects which provide a platform for generating increased sales revenue

The last point (above) is pointless unless they are unable to get immediate opportunities over the line. If not, then the business (plan) is not viable in its current state.

Regarding improving production efficiencies, this is always an ongoing exercise for any company. They have done this before in ramping up their production capacity, but we are yet to see volumes to meet these capacities (or have we?). Again, show us sales first and then let's look at improvements in efficiencies.

Their statement about efficiencies also worries me in one respect - are they telling us that at the current cost of manufacture, the business is unsustainable? I hope not, because again, this would indicate that the business (plan) is not viable in its current state.

I am hopefully being overly cautious because these two points were not seen as priorities...

...therefore, show us the money guys...

...first.