If they stick to their guidance from just over a week ago, this...

If they stick to their guidance from just over a week ago, this will be a non-dilutive cap raise....that's if.

The Company provided an update on 18 June 2020 following the initial COVID-19 lockdown period, noting the budget for the full implementation of the upgrade project had increased by ~$1.2 million and the timeline for the commissioning of Phase 1 had been pushed back to April 2021.

Currently, the project is on track to conclude construction of Phase 1 early May, followed by commissioning during the balance of May and June.

The Company further noted in its 18 June 2020 update that it anticipated that the increased cost would be financed by a number of non-dilutive solutions, including project and equipment finance, government grants, R&D tax initiatives and reduced or deferred capital expenditure.

At present, these solutions are expected to deliver the funding required to complete Phase 1.

Entering Phase 2, which involves the addition of the char kiln and associated integration components budgeted at ~$1.9M, the need to source further funding solutions is anticipated. The Company is exploring a range of options with preference given to non-dilutive options including:

• Increased R&D loan limits
• Government grant and funding programs
• Project contributions from strategic and technology partners
• Alternative debt funding solutions

There is also equity based funding potential via the listed options and existing Equity Lending Facility (ELF), although the outcome of these will be heavily influenced by share price:

• ECTOE options – Strike of 0.3c – fully diluted cash = $7.32 million
• ELF 2021 – Strike of 0.1c – fully diluted cash = $2.05 million