If that asx query is not an eye opener for current investors then NOTHING will save them.
That is as serious a situation as you want to be in. Any potential funder at this moment has read that ASX release and knows that they have the company over a barrel. They can get what ever terms they want at this point.
The issue for funders is how do they get their money back. The company cant afford to just take a con note, as the interest repayments would just be coming from loan capitalisation and not revenue.
Hence the ONLY funding available is a capital raising- dilutive to current holders. Existing investors are about to take a massive haircut as the business is recapitalised.....IF, and that is a huge if...they can find an investor willing to take on board lots of worthless paper.
I would expect we will see a few more jump ship today.
Kiril.
ISN Price at posting:
5.9¢ Sentiment: None Disclosure: Not Held