I think the fact that Premier Body Armour is on back order is a good sign, surely they will order a bigger amount now. Plus the 3 new customers.
The line of credit of $3mil should mean they will be ok for a few quarters, plenty of time to see the new revenue streams coming online. The initial $1.1m is based on eligible inventories and receivables, which is enough for now. As inventories and receivables go up the line of credit can increase up to $5mil.
Colinton Capital (Simon Colinton Moore on the board) and CEO are heavily invested in this, it's a good sign that they think debt is cheaper than equity at this point.
AJX Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
