gda have just released the quarterly cashflow statement.it seems...

gda have just released the quarterly cashflow statement.

it seems that to stay afloat, the company borrowed $430,000 during the quarter. these funds will have to be repaid, and the company raised $320,000 by the palcement of the shortfall, plus a further placement of 6m shares. the company is seeking approval to place another $260,000 worth of shares.

anyway, the $320,000 raised does not cover the $430,000 of borrowings, so $110,000 from the proposed placement wil be used to cover that. after allowing for this,then the cash on hand at the end of december could be as high as about $500,000 - but from which should be deducted outstanding creditors. watso has noticed that some companies provide a cash at bank balance, which is net of creditors. anyway, it does not seem that the company has approval to place the extra shares - so it could well be, that after allowing for creditors at dec 31, then the balance could be about ZERO

anyway, it is now the end of january, and of course the company has incurred costs in the meantime> it could be safe to assume that the company still has borrowings at the end of january, which together with ongoing expenditure, ould mean that any funds from the proposed placement will be accounted for