Well, here are my thoughts:A "rights issue" sounds more positive...

Well, here are my thoughts:

• A "rights issue" sounds more positive than a "capital raise" (sorry "another" capital raise");
• In the last HY, there were large drops in revenue over the Japan, Australia and US markets;
• Japan is the only segment with an operating profit in the last HY - very large losses in other segments;
• Lyramid seems as becalmed as both Team NZ and Luna Rossa boats were today;
• They persist in terming the R&D tax credit as "revenue";
• The Covid tests have probably all rotted on the shelves by now;
• The revenue and EBIT for the last HY is down by circa $1million;
• They have burned through circa $2.5 million in cash (or 35%) over the last 6 months of the last HY; and,
• The Receivables are down 45% over the same period.

Normally, raising cash - whether it be via a "capital raise" or " a rights issue" are desired for "capital" type projects (asset purchases, debt repayment, M&A etc). However, given most of the negative numbers are "revenue" related and of course, not to mention the large sucking noises that are incessantly emanating from the salaries & admin departments...it would be reasonable to assume the current rights issue is more so required to fund "revenue".

IMHO, this current financial event should therefore be termed a "revenue raise". Given the cash we already have and what is supposedly to come in, I thought it to be a bit premature, so I suspect the Board knows something we don't and I would not be surprised if this turns out to be more about survival. We'll see - hopefully I am wrong!