CRO Technicals, page-65

Do you read the quarterly reports? I posted the exact quote which was from the Sep qtr activities report yesterday:

"Cirralto board approved the utilisation of A$10m in capital to cornerstone the Company’s debt warehouse which is expected to grow to A$100m in the coming quarters."

At the end of Dec qtr the company had $8.1m of its own funds on loan. IF the company establishes a DW that could free up that $8.1M when it is repaid for working capital.

Let's go over the facts one more time so people can at least discuss things based on facts.

As at Dec qtr:
$13m Cash on hand
$5.7m unused financing available (MoneyTech line of credit)
$8.1m loan book receivable

Given that the loan book is short term finance (30 to 90 day loans), we know that entering the current quarter there was approximately $26.8m of short term liquidity available to the company.

Assuming that $10m of that cash on hand remains reserved as collateral and a debt warehouse of some size gets established, then the company might chose to reallocate the $8.1m currently on the loan book to working capital for other purposes when that money flows back onto the balance sheet as the company transitions the loan book onto the debt warehouse funding.

The banter getting around that the company is going to need a CR soon isn't supported by the facts presented above.