if it opens by miracle on Monday with only $3M in a lawyers trust account and ongoing negotiation with the secured creditor continuing, how long with that $3M last? Remember the major holders are concerned about financial position and management, they have only kicked in $3M probably to allow it to trade.
If the 3M$ is gone before they get a bank to extend more funds based on letters of support it doesn't really say much about the bank does it?
$3M, no approval in quick time with no guarantees only letters of support, Will it be trading by the following Monday?
I suspect the ball of liquidity will get lower and lower as both sides long and short will want to close.
Surley Wayno, the existing shareholders, suppliers paid in paper can see the risk?.
I think its its all over for existing equity, major shareholders seem to be the only one in the box seat to buy assets fully secured from a bank that are unfinished and to some extent unknown, untested, no cashflow.
I think the major shareholders, regardless of being Chinese have done the right thing. This project goes on and on imo, constantly needing capital and all that is shown is a few hyped samples and some newly delivered test ingot.
I think a lot of existing equity is potential in for a shock in the coming weeks.
I don't think the $3M last long and if history of organising funds is a guide, once its gone, existing equity imo is at high risk of getting hurt in its current format
, lets see what MASSIVE announcements come out before the scheduled open.
Good luck
CDU Price at posting:
$1.70 Sentiment: Sell Disclosure: Not Held
