As of Dec 31, QRS had $1.1mill in cash. The company also has a...

As of Dec 31, QRS had $1.1mill in cash. The company also has a $4.5mill, highly dilutive credit facility, but the maximum the company can draw from this facility is $150k per month. $150k per month is insufficient to meet operating costs, even for the current quater (the last quarter posted a negative total cash flow of $1.5mill).

Thus, in my opinion, QRS has no choice but to try and raise capital ASAP. And given that the company has no substantial revenue streams (despite all the hype), a successful placement above 40c is by no means certain. If QRS cannot raise capital without giving away the company, then there will be little choice but to attempt to quickly sell the IP that is not already owned by BTG. Whatever option QRS choses, given the company's desperate cash situation, it will not be in a strong negotiating position.

I'm also assuming that, unless the company can raise significant further capital, the Baxall Aust acquisition cannot be finalised.

Tough and uncertain times ahead.