Ann: Trading Halt, page-70

The timing of this CR is definitely disappointing, however, it is necessary, especially considering the current phase we are in:

According to feedback from the AGM (thanks TB) and statements by PH in presentations, POS is in the phase of active discussions and possibly negotiations with potential lenders and potential off take customers.

Negotiations are best likened to a tug of war, where each side wants to achieve the best deal for its side and use arguments to try to convince the other side why they should benefit more.

In this case, negotiating with lenders, if the lender believed that POS was desperately short of funds, they would use that to obtain a better loan deal for the lender at the expense of POS, knowing POS is desperate to urgently sign for a loan and in desperation, willing to accept worse terms and conditions. Not good for POS.

A similar argument exists when negotiating with potential customers for an off take agreement. Any prospective customer, knowing that POS is desperate for funds, would use that to negotiate a quick deal that is great for the customer but potentially bad for POS.

My view:
POS will be in a much better negotiating position with these extra funds and that is of major benefit to all of us in the longer term.