This will be a compliance issue. AKP certainly has sufficient short term working capital for business as usual. Unfortunately in order to avoid going concern qualification to 31 December financials AKP directors need to be able to demonstrate sufficient working capital to meet their future plans as detailed in the AKP budgets and cash flow projections for 12 months post balance date. With the obvious need for extra working capital due to planned ramp up in production costs there was a requirement for additional funds without resorting to further borrowing.
I read this as extremely positive and n excellent indicator for future of AKP. Major production is obviously planned in 2019.
The level of dilution is minimal at $13/share issue price. Hopefully this is the last CR required before AKP is cash flow positive?
AKP Price at posting:
$14.60 Sentiment: Buy Disclosure: Held