This announcement basically means CHM needs to pay $650k in legal costs by the end of May...regardless of whether they decide to go ahead with the case.
In order to proceed, CHM will need to increase that to a total of more than $1.75million to progress the case! And that is just the items that have been costed - there are items listed in the court order that have not even had costs specified yet!
At the end of March, CHM had $945k in the bank...it would be even less by now...they spent $150k on admin expenses last quarter, plus they have already had $7k in other costs issued against them since then. Admin costs for next quarter could be even higher given all the legal motions and cost applications bouncing around. Plus it is a financial year end - they will need to pay an auditor to sign off on the accounts (that does not come cheap).
From what I hear CHM have been trying to raise money but have been unsuccessful so far. No announcements have come out from CHM regarding any capital raising.
If you know something we don't about CHM's "means and intentions" then please enlighten us.
Otherwise, CHM seems to be kaput!
CHM Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
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