It's pretty hard to come up with positive news to balance the dismal share price at the moment - nothing in the news, no sign of an imminent announcement to reverse the share price.
I had a look online for wholesale costs of rayon yarn. I found this website:
https://www.alibaba.com/showroom/rayon+yarn+wholesale.html?fsb=y&IndexArea=product_en&CatId=&SearchText=rayon+yarn+wholesale&isGalleryList=GThe cheapest yarn is for US$1-3 per kilo with most of it being value at up to about $5 per kilo (some higher (up to US$9). I would assume that there would be some premium placed on our environmentally friendly product and it would be of better specifications than the cheapest available, so $5 per kilo wouldn't be out of the question.
At 8 tonnes per month by the end of the year, that only amounts to $40,000 per month. Even if it was three times that it wouldn't be enough to keep the lights on. So it appears that the plan (as was always stated) is to make money largely through the licensing of the manufacturing process for the fibre/yarn. This is probably what was being alluded to when the company repeatedly touted that, in discussion with garment makers, these companies were prepared to delve deep into their supply chains to become more environmentally sustainable when it comes to rayon. It is also relevant that after the last supply provider announcement they said they could focus on finding a fibre/yarn manufacturer to produce our product.
As a result, and from what I can tell, we will be waiting a little while until we are making revenues that will keep us self-sustaining and therefore it is important that we understand how the company will raise capital to keep the lights on in the coming six months.
I await a response from the company about this.
