FOREX Risk and upcomming CR.

The latest cashflow report indicates EDE has $700k in the bank account and outgoings of $3M this quarter. They have recently acquired a $1.8M loan (receiving only $1.6M of proceeds). This to me indicates that sometime this quarter Eden needs to go to the market for more cash. As mentioned in another thread, at a 20% discount and assuming they issue 15% of share on issue, at best they can raise $9M by releasing 320M shares. This gives them cashflow for the rest of the year.

The reason for the new thread is the Eden USD/AUD issue. It hasn't being spoken about enough, but the AUD has decreased from 1.3AUD/USD to 1.5AUD/USD. This means that the purchasing power of Eden has decreased by about 15%. So all the local sales staff are now 15% more expensive. Any property fees and production costs are also 15% more. Sales of course are now worth 15% more, but as they're losing money on production this isn't much of a help.

So how are all the holders hedging this risk? Hoping the AUD improves? Reduction in share price? Any business which has had a large portion of their expenses increase by 15% is a red flag for me.