There is too much self-interest at NRZ.Phil and Murray approve...

There is too much self-interest at NRZ.

Phil and Murray approve pay raises for Justyn and his family and relatives who work at NRZ -> Justyn and Murray approve pay raises for Phil who can't get a job anywhere else -> Phil and Justyn approve pay raises for Murray, who has no other job, NRZ is his only role. A vicious circle.

The first key risk listed in the prospectus scares me. NRZ owes US$8.8m (approx. A$13.5m) due for payment in 3 months. The rights issue hopes to raise $3.2m and will close in a couple of weeks. This gives the board 2 months to raise an additional $13.5m during Christmas and the lead up to Chinese New Year, impossible.

"In June 2021 the Company entered into the EPCC with DL E&C Co Ltd (DL). Under the EPCC the Company is required to pay DL US$29,265,000 in four milestone payments. To date the Company has paid DL US$8,779,500 and owes a further US$US$8,779,500 (due for payment by 31 January 2024), with the balance of the contractual price accounted for as an accrual in the Company’s financial statements. A further US$6,214,880
is also owed for additional components required for the NRUP. DL has a representative on the Company’s board.

The Company is well advanced in discussions with a potential strategic partner, with due diligence complete and the parties seeking the necessary approvals.

The Company requires substantial funding in excess of $100 million to complete the EPCC and related works, and provide working capital to operate the NRUP. Whilst the Company believes that there is a reasonable basis that this will be raised, its ability to do so is not certain and may be adversely affected by the final cost for the construction of the NRUP, market sentiment and the state of financial markets generally, and there is a risk that it will not, or that it will be raised on terms adverse to existing Shareholders."