It looks more likely that the company is desperately running out of cash. I don't think a takeover is likely, rather should the company be unable to secure more additional funding then it could be lights out irene.
q4 2015 net from operations ($5.2M) funding from con note $3.2M (at $1.10), Q3 2015 cache from ops ($4.4M) placement at $1.oo raised $10M, remaining cash $8.7M. March Q 2016 not out yet but we haven't see any capital raising since December so cash shortfall from operations (which has been consistently increasing all through Calendar 2015) may be up to $6M for the March Q.
So right now share price is tanking and anyone who bothers to spend 10 minutes looking at the presentations and the quartiles can work out that cash is going down rapidly and there has been a regulatory setback in sunny India. This company will be trying to raise new capital urgently. The investors that stumped up at $1.00 will be pissed off and the insto that put up $3.5M for the $1.10 con note might be feeling a bit squeaky.
No funding = administration.
I am sure the management team is on the case.
I have been watching this for a while, I was going to buy in but after the Indian setback and assessing the financials, I will wait my time and see for a resolution.
cheers
Add to My Watchlist
What is My Watchlist?