Page 28 of the most recent 4D, dated 28 February 2023:"The need...

Page 28 of the most recent 4D, dated 28 February 2023:

"The need to raise additional capital gives rise to a material uncertainty, which may cast significant doubt over the group's ability to continue as a going concern. The group has an unused $30 million equity facility agreement with L1 Capital which it can draw upon [...] subject to conditions and pricing set out in the announcement dated 9 June if required. The Board is also assessing alternative capital sources, including a placement to sophisticated and professional investors and other options with advisors.

The directors believe that the group can raise capital as required based on the success of previous capital raises and the continued development of the group's projects.

In addition, the group can employ cash management strategies such as delaying or reducing some operating activities.

Based on the above, the directors are satisfied that the group has access to sufficient sources of funding to meet its commitments over the next 12 months, and it is for that reason the financial statements have been prepared on the basis that the group is a going concern."

It is also worth noting that page 24 mentions the following under "Contingent liabilities (continued), (b) CDH-17 intellectual property":

"Milestones
1. Initiation (FPFD) of the first Phase I or Phase I/II trial (but not both) [...]

Management expects the milestone 1 to be met with certainty, however it is uncertain whether other milestones will be met due to number of factors which are outside the group’s control affect this outcome. Hence, management has accounted for those payments in relation to the milestone 1 for this current reporting period."

The start of a new trial (in this case CDH-17) is what I would consider a clinical trial progress, which will be met "with certainty".

Having said that, given the conditions attached to the L1 Capital $30 million equity facility, the additional "cash management strategies that can be employed" by the group without alternative funding sources may not carry us far enough for CHM to see the game-changing announcement/s we are all hoping for.