We've another 3 months of cash left based on current spend (+ possible conditional QVT loan), and we can only issue about another 7m shares without shareholder approval ie EGM. 7m shares at 20c would raise $1.4m or 6 weeks worth. Then there is the question of QVT's convertible notes being repriced which would hurt immensely. Yes TZ did well to negotiate with QVT so that notes weren't repriced at 32c. However, this is only a good deal IF they aren't repriced at some point in the future, which QVT reserves the right to do so.
TZ HAS TO deliver over the next few weeks or we could see a hell of a lot more shares on issue. This delivery needs to take the form of significantly increased cash receipts. Even cutting costs this late in the game won't achieve much at all.
TZ also has to deliver significant contracts to ensure that cash flow position improves over future periods. This also needs to be marketed well to ensure future capital is raised at higher prices, and thus the 3 year sequence of decreasing prices at which capital is raised, ends once and for all.
TZL Price at posting:
29.2¢ Sentiment: Buy Disclosure: Held
