GS interviewed by Alan Kohler, page-4

Greg, we always start these interviews talking about cash. Tell us what your current burn rate is and how much you’ve got in the bank?

We’ve got around about $2 million dollars in the bank, which is down at the low end. Our current burn rate is something in the order of about $450,000 a month, so we obviously need cash…

Where are you going to get the cash from?

We’re actually in discussions with a number of potential strategic investors overseas and that’s what we’ve been looking at, we’ve got a fallback position of a rights issue and raising the cash internally from existing shareholders, Tasman Resources through its wholly owned subsidiary would take up its full entitlement in that. We’re anticipating we will, with the increase in sales that we’ve got, we’re targeting to be cashflow positive by the end of the financial year 2022.

The problem is, with the 2-cent share price, your options are limited, it’s a bit difficult to make a rights issue at 2 cents.

It is indeed, but if shareholders were to take it up proportionately, no one ends up with a different percentage from where they started, that’s the advantage of a rights issue as opposed to a dilution with an external partner.

When you talk about strategic partners, you’re talking about in the head company, someone buying a stake in Eden Innovations or are you talking about selling parts of your products?

We were actually talking predominantly about taking a position in the parent company and the reason being, the products that we currently have are diversified and I think most of the groups that we’re talking about are interested in the much bigger picture.

How much does Tasman Resources own of the business, is it 40 per cent?

No, it’s currently just over 30 per cent and it’s got enough cash. We would possibly raise $3 or $4 million in a rights issue and with the increase in cashflow we anticipate that would be pretty close to getting us through to a cashflow positive situation.