Thank you for your well researched reply. I would like to think that in the “Fullness of time” ARW would be a dominant Australian Bio Diesel supplier. Due to the Liberal Government changing the exercise rules (Which ARW & Others used for the justification for there 88 Mil Litre plants) added in my option 4 to 5 years to an Australian Bio Diesel industry.
ARW have done a brilliant job staying alive for the last 2 Years using primarily capital raising, cutbacks and limited Sales. ARW originally also lost focus poring money into the USA instead of concentrating on completing the Plants in Aus. Hence a capital rising.
ARW has 338 Mil shares on issue they are going to have a One for One rights issue @ $0.01 plus an attached option. (The current share activity suggests it is close) Therefore if in the unlikely event (History) that all the rights are taken up that will mean the potential of 1000Mil shares on issue.
My concern is without Sales orders (Been Flat for the last 12 Mths) or a “Sugar Daddy” (Rights Issue) can ARW last the distance.
As mentioned before the new directors are no fools. We need • Market transparency. • Marketing Plan. • Realistic update on the future of the industry. • Review and directional change of current management. • Cash Burn action plan.
In principal I am a fan of ARW but can it last in its current form till Australia accepts BioDiesal. It needs Capital to restructure.
Please do your own research.
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