The security for costs exceeds the the assets of the company. CHM may now be technically insolvent IF they pay the security. However, they might appeal the security decision.
In any case chm has to get more cash from somewhere. Not only do they need to raise cash to secure the defendnat's costs but they also need cash to continue with the daily operation of the company.
Loans - who would lend money to them without solid security? Unlikely.
So the only other way is issue more equity. That in itself may be costly and may not succeed noting that the best asset they have is an unknown result in costly litigation. I suspect they will try to raise another 2 million but that might have a serious dilution effect on current shareholders. So get set for some broker to start talking up chm prospects so that they can get a placement done. Maybe asic needs to keep a close eye on the company and their brokers over the next few weeks.
If all that fails then chm do not have enough cash at the moment to pay the security for costs order. If they don't pay the case will eventually be struck out. If they do pay it might be that they place themselves in a position where liabilities exceed the assets. Then they may not be able to continue to proceed as an operating company. Time will tell.
CHM Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)