Ann: Trading Halt, page-22

To rely on solely a rights issue takes is risky and takes too long. The problem is that when a rights issue is announced, it usually takes a month or so before the company receives all the cash assuming nothing goes wrong. Its not hard to imagine a situation where the market is risk off, SP tanks and suddenly not many people take up the rights issue and the company is still short of cash.

Usually what I've seen that is relatively successful is when a large portion of the funding is via sophs but existing s.holders also get to participate via a rights issue at the same terms.

What's done is done but I can't figure out why management couldn't undertake the raise in Q1 when they didn't have less than 1M in the bank...