Shortfall

VXL are a bit tardy with their response to the shortfall. The notice announced the expected shortfall, but not whether any of that was likely to be taken up by any other parties, including those with rights entitlements. Nor did they indicate how they would fund themselves through to profitability during the completion of the Phase 1 start-up before export sales income flows in to pay the wages bill. Presumably they will need to draw on the first loan to do that if there is no big uptake of the shortfall, so it would be nice to have some confirmation that that is the case and that the loan wasn't at all conditional on success of the rights issue. Its looking like the SP might flounder about a bit until loans are firmly in place, full nameplate production is reached, and sales income starts coming in.