Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-128

Raising capital will be a disaster for most shareholders. Not only would it be at a massively discounted price but all retail holders would be excluded from participating. A rights issue requires a prospectus which includes disclosures which the company clearly can't or won't do. Until all the secret squirrel stuff is done and they feel that they can disclose all to the market, the only option for a CR would be a placement to sophisticated investors who don't require a prospectus. This is also likely why the last CR was a placement, given what we now know was likely undisclosed at the time.

The bigger question at the moment is the $20mil paid by CATH which is refundable if AVZ can't deliver on the deal. There has been no reported progress on AVZ being able to resolve the outstanding condition precedent to complete this deal. Has anybody heard anything on why they haven't managed to resolve this issue?