Well, it stands to reason, lest they are trading insolvent. The cash burn was pretty significant and based on a simple projection, they ran out in January/early Feb at the latest. Notwithstanding their statement to reduce expenses, you cannot turn it off like a tap.
It won't be from beer as they simply don't have the inventory for that, especially if their still growing volume through ALM. That is, working capital for beer should be increasing (raw materials + WIP+ finished goods) given they confirmed the brewery was not yet at capacity (they contradicted themselves on this one in an earlier statement, but corrected it at the half-year - yes we noticed).
There should be cash from F&B at Mildura, but given Sorrento has just commenced trading (and it's tiny), this is probably insignificant.
My guess is they'll announce something quite soon about the cash prospects ahead as they're unlikely to make it to the quarterly cash update at the end of April.
Finally, we've just seen 13.5 cents and the sellers are now lining up.
BEE Price at posting:
16.5¢ Sentiment: Sell Disclosure: Not Held
