My strong recollection of one of the announcements in regard to UK Fund's facility was that there was an 8 cent minimum share price, before the first tranche could be drawn. The original agreement was pre-production, when the share price was around 20 cents.
They must surely have some level of production by now, and as a previous announcement was positive about the cash ... so ...
With large volumes trading recently at 3 - 4 cents, there would seems to be only two alternatives ... either:
Option 1: they are on the verge of achieving more cash from a back-up source - in which case 3 - 4 cents is unfairly cheap, and so trading should be suspended, or
Option 2: they have missed out on raising cash, and so must be about to go into administration or care an maintenance, in which case 3 - 4 cents is too much (in today's market).
If it was option 2, then they would not halt trading, but rather would appoint administrators or go into care and maintenance immediately, therefore it must be option 1.
My guess is they have an agreement or two for cash in a process of documentation, and so it is improper to have trading going on whilst funding is documented and drawn.
GBM Price at posting:
3.7¢ Sentiment: None Disclosure: Held
