time is ticking away so i went back to the announcement of 16 Oct which outlined the initial debt raising. It posed a few questions. 1. did the additional $1m ever get extended by mutual consent ? i only can see a $1mln drawdown in the Dec QTR cash flow, so i guess if it was drawn it would have been after Dec 31st, or it was never provided. So if they only have drawn down $1m of the debt facility then assuming it was drawn in Mid Dec (benefit of the doubt) then 25% $250k would be repayable in March, $500k in June and $250k in Sept. At the end of Dec they had $613k in the bank and were burning circa $750k p/m. So on my rough calcs, they need circa $6mln to get through to Sept plus $1m to refinance/repay the loan. Given the lack of viability on revenue its hard to be more positive, but get an inkling the revenue is about to come on albeit slowly. Currently about 621m shares on issue, putting to one side the recent grant of free options to the new directors, then they would need to issue 60,000,000 new shares at $0.10 to raise the $6mln. The loan would probably get rolled over on that basis but i'm sure there will be more options getting thrown around. That would then see the business with circa 680m shares and a circa $70m market cap. Still a big number but hopefully once capitalized properly the new guard can push it along with more gusto.
IWG Price at posting:
13.5¢ Sentiment: Hold Disclosure: Not Held
