The problem here as i see it is the total current liabilities out weigh the current assets by over 3 to 1 !
Even if we take total equity into consideration at $32M, the current MC is over $80M !
This to me basically means even at fair value the shares should only be trading at $32M MC which would equate to a share price of 4.3 cents ! Hence why we are seeing the share price continue to fall and will continue to do imho !
But then you have to take into consideration the TOTAL CURRENT LIABILITIES exceed TOTAL CURRENT ASSETS by $22 million which in my opinion could be a serious financial issue and looks very shakey at the moment and it is a little wonder the board have decided to go this way, !
I am not saying lenders etc could pull the plug but it is high risk now !
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