MSC picked the wrong time as a start up company in need of cash. The financial world is upside down. My calc's are $500k cash + $2m placement = $2.5m readies. Less $2.3m debentures redeemed = $200k left. We don't know what their income is but they are selling many products and with about $4m to be recieved in February for their Chinese calcined kaolin the $500k/mth cash burn should not be too much of a problem. In fact by February they shouldn't need the money from the proposed ACC preference shares ($5m). They should be selling lots of blocks by then and getting paid for them. A former brickie I know says these blocks should be jumped on by the industry.
In summary by March, MSC should have plenty of cash flow and all blue sky. They just have to run lean for a while. Would be a nice gesture for Vic to forgo payment of his salary for maybe 3 months. Would show belief in the company and inject confidence into we shareholders.
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