Shareholder Briefing 7.00 PM Tomorrow, page-11

The SPP is underwritten to $5m. So SAS has already raised $15m with this exercise. Could it be tanking? Perhaps. Maybe they think they can get more than $5m from it if they leave it open. Who knows. Perhaps tonight's call will provide some insight.

My primary concern is the next need for capital. When this is all done, they will have about $15m plus whatever they can raise in addition to the SPP underwritten $5m in the bank. They burn about $2.5m a quarter in operating expenses and need about $15m to get 20 Pearls up. So, it's still a year until those Pearls are generating cash (they need be launched and then get an "In Operation" certification which takes 90 days). Until then, the only cash is the Diamonds, which will maybe generate $3m if they do really well.

So unless they are getting Pearls cheap, or perhaps they are on a payment plan where they don't have to pay for part until the Pearls are certified and generating revenue, or they are able to operate cheaper than I expect, then they will need to raise cash at most in six months. From somewhere. It's conceivable that with great revenue on the Diamonds and a favourable payment plan on the Pearls, that SAS could run to December on this raise, but I don't see how they could run any further.

More money will be needed. I'm particularly interested in where that money will come from.