Lets take some positives (yes I know some are hopeful):
1) The cash bleed will stop. Hopefully there's not a long lease on the pigpen in Chicago, and other contracts.
2) QVT want to work things out, and are happy to see the cashflow forecast. They expect a hole in the cash position. They would have known this as soon TZ defaulted, and more so when the bogus numbers were released.
3) We have some smart heads on the board, who have experience raising cash. If a speculative miner can issue equity based on some dirt in the middle of knowwhere, I'm sure TZ can.
4)We have a good few investors with sizeable investments who have been in TZ for many years. They also are believers in the technology, and are a possible solution for any shortfall in any placement if a shareholder placement is the first option. Alternatively, they may well be the 'go to first' guys. These people will/should want to protect their intial investment
5)Following on from the first point, the size of the investment required in not that huge PROVIDING the orders such as Anixeter etc are goers.
6)PDT is generating a profit.
7)It is possible that we may have a cancellation of Sigalla an Falconer's shares. Something could be worked out in this respect if QVT's lawyers are confident that these can be clawed back.
8)There may be some kind of plea bargain with the previous directors in that us shareholders and TZ may not take legal action provided all missing funds are returned+interest. However, we can take solace in that ASIC and other bodies will not let this go and justice will be served, just not from us.
9)There is more we can claw back with the threat of action eg prior year auditor fees.
10) Creditors do need to be paid, but with decent communication and explanation, I'm sure many will accept some kind of payment plan
11)Many of the cost such as R&D, purchase of IP may have been inflated, and the difference pocketed. These are other expensed that will reduce.
All in all, we may end up seeing a cashflow positive business somebody once said, but not thanks to him
TZL Price at posting:
91.3¢ Sentiment: None Disclosure: Not Held
