You've clearly hit the mark on a large number of points but a debt issue is not something that a company in APG's position can lightly consider. A rasing at 1.6c won't work either for the reasons set out below nor will a share consolidation serve any useful purpose.
Any borrowing would necessarily be on terms that required security to be granted over APG's assets. The sole assets we have are the plant and the related intellectual property.
I understand Kronos would have injected addditional funding to complete the plant (before the litigation) but APG rejected the funding because of the onerous terms.
It may be the case that APG could borrow the funds but NOT on acceptable terms. This is because its still a high risk company and will be until such time as the plant is proven and delivers efficient/profitable products that are wanted by the market.
So even if there is a party out there who would come up with the $s, why would we risk everything if they demanded (quite rightly) security over the company's assets.
No, the only realistic course is to plough ahead with a limited capital raising to complete the plany by the end of the June quarter.
I'm sure the company would welcome approaches from anyone with a deep enough pocket to put more skin in the game. A placement at 1.6c is but a dream/nightmare as the company will want to raise $2m plus and a raising at 1.6c won't deliver that amount.
Yes, everything is in a delicate situation and again we are being asked to put our hand reluctantly in our pocket. However, I'd rather this then be fleeced by a debt funder.
Lastly, my understanding is that a share consolidation is of no value or relevance in the current situation.
All the best to those with skin in the game!
APG Price at posting:
2.0¢ Sentiment: LT Buy Disclosure: Held
