See, was that so difficultSo once again and now it plain...

See, was that so difficult





So once again and now it plain English, OEL would have been non-compliant with key financial covenants were it not for the Placement and Equity raising.

The issue is also quite simple. When the Debt Facility was announced on Nov 4, 2020 this was left off from the list of "Key Terms of the Facility".

"Company is required to have a cash reserve of USD$5 million at all times, and must also have a minimum cash balance of USD$17.5 million at 31 March 2020 (Minimum Liquidity Amount), which includes the USD$5 million cash reserve"

Now I contend that any reasonable investor would have been able to conclude that the company would not have the requisite US$17.5M cash balance by 31 March 2020 and that an equity raising was necessary. A reasonable investor would also expect that when the Shareholder Letter of Feb 17 was put to the market, a company facing such tight liquidity would disclose such a covenant, especially when the companies OWN CASH FORECAST SHOWS IT NOT REACHING US$17.5 until approximately Q1/2021.

It's back to ASIC. Next up the will be the Financial Review, The Australian, The Sydney Morning Herald, The West Australian. Surely someone has to see that this is not transparent disclosure of vital company financial information.

I refuse to lay down on this. Lockdown is the perfect environment to sharpen the knife.

Does anyone else agree or I am just more than a little vengeful.