Ann: THC Global Secures $4m Debt Facility, page-12

Well said. This is no a bad deal at all.

Only a few weeks back, THC declared to ASX that they have no issues with cash flow and no plans to get any finances. Ultimately, the cash is king and the business needs to stay solvent. The market didn't really believe us, and the SP went down to 20c. I, amongst a few others here, commented this fact at the time.

Do we have a cash problem? You bet we do. My speculation is that the management was hoping that we would get revenue by the end of Q1 and it would solve the problem. This strategy is no doubt very risky, and the market did not ignore it at all.

Fast forward to now, our plan to revenue is delayed, although we don't know how much of the delay is contributed by the little pandemic or ourselves. We are running out of cash, hence the debt facility.

I would say the news today is overall a good one, because,

• $4m is actually not a lot, considering our balance sheet. The fact that someone, is willing to put money in this industry at this moment of time, shows we would have a strong plan to revenue. No banks are idiots and we must have presented them a very rosy and believable picture, e.g. how much revenue is going to be generated with this magic '6000' number.
• we are going to spend the money in expanding the production facility, not the growing sites. If you search my old comments, this is what I predicted a while back. The strength we have is the Southport, not the growing facility. This is a sure way to get revenue fast.