It is hard to appreciate that selling is an over-reaction to the fact that the auditor paid to look over the books feels there is "significant uncertainty whether it will continue as a going concern - coming as it does shortly after news reports that couple of hedge hyenas have been sniffing around her haunches and NMS is "in play".
After several cap-raisings they now have to re-finance and their best recent news is they have hired a few expensive Vice Presidents and that their bank has agreed to agree but apparently haven't actually yet agreed to not break them by demanding repayment this month of 15 miserable million?
You can call it the auditors covering themselves, but it isn't mincing words is it, and what they are covering themselves against is that it ceases to be a going concern.
It seems greeted quite casually in some quarters but I can't figure out why, it was gobsmacking stuff to me and the last straw.
Bank agreement to extend or whatever will presumably have to be predicated on the bank forming the view that there is not a significant uncertainty of it continuing as a "going concern" at all, contrary to what the auditors have just stated.
Even if that statement was made only because the bank has not yet made its final decision on how the loan will be re-arranged, rather than whether it will re-arrange it, banks can be fickle and why any delay in making a new arrangement about the loan at all?
NMS Price at posting:
9.4¢ Sentiment: None Disclosure: Not Held
