fortune favours th brave!!, page-11

Management of Nexbis have been contacting fund managers and brokers over the last couple of days. They claim that their cash position by June 30 will be between $10 and $20m. This is a worry.

They had $18m at 3 Feb 2010 and raised another $10m via share placements in March/April. If this has fallen to b/w $10 and 20m by June 2010, then this implies they are spending somewhere b/w $6 and 10m every six months (assuming they will have paid either $2m or $4m to trust defender). However cash burn could be higher if the current cash level is closer to $10m. In the next 12 months they will have had to pay another $8m to Trust defender. That leaves anywhere between $2m and $10m to run the business over the next 12 months.

Looks like a binary outcome for this stock. Either they get a paying contract pretty soon (e.g. China or Malaysia recommencing)and the share price will jump or they will need a very dilutive cash injection.