Bit if a strange one this. No mention recently of needing...

Bit if a strange one this.
No mention recently of needing imminent working capital. In fact last quarterly noted that cash bal 30/6/18 was $3.4m with expected spending for this quarter $1.6m. They also made particular mention of the expected Gov R&D tax incentive refund (insinuating that at least the near term was in hand)
I acknowledge that those figures would suggest further funds will certainly be required sooner than later leading up to commercialisation and I agree with those that suggest that this is a hedge to ensure sufficient cash in case there is a hiccup with results and also balance sheet may need strengthening to finalise deals.

It does seem to have come out of the blue and I wonder if there will be a second component raising further funds via a rights issue to retail holders. Obviously existing holders would be happy with that as results should be known prior to date of acceptance!! I am not holding my breath as this raising seems to have been done on spur of the moment so somehow doubt a formal retail offering is being written up as well - can only hope.
(I think if results are good some holders may well be a bit miffed if only the big end of town get to buy in at a 20% discount at last minute on a stock with momentum - If results are bad then no one happy anyway)