Hardly surprising as they are burning cash. They need to raise more cash. Ideally it will be full funding of PSD and not a cap raising. What ever happens we wont have to wait much longer to find out.
The directors have prepared a cash flow forecast for the period ending 28 February 2021, which indicates the Group will have sufficient cash flow to fund its operations during the twelve month period from the date of signing this report, which has been based on the following assumptions:
(a) Cash receipts of at least $7 million in relation to the issuance of securities by April 2020; (b) Continued deferral of planned but not committed expenditure on the development of Project Sea Dragon until such time as it achieves financial close on planned fund-raising activities; (c) Managing and deferring Group costs and creditor payments where applicable to coincide with the fund-raising activity outlined above to ensure all obligations can be met.
The fund-raising initiative is advanced at the date of this report in order to raise the required additional funding.The Directors are confident this fund-raising initiative will be successful and the financial report has therefore been prepared on the going concern basis.
SFG Price at posting:
5.8¢ Sentiment: Hold Disclosure: Held
