The work they need to complete is expensive. How would you propose they get funding?
They can’t exactly go to a bank, who would lend to a company that has not earned revenue for years And no ones going to give you money for nothing. So you have two options, one you stay stagnant and eventually go bankrupt or two you dilute a bit and move forward to the benefit of shareholders.
For a company that has not earned revenue and has latex dormant for so long it’s amazing the terms they have been able to negotiate for funding.
300k @ 25% above market price.
1m @ a weighted average share price ensuring that the higher the share price the better the terms. Huge incentive for the company to move the stock price north.
If this funding gets us to a commercialisable product - and from that contracts in the magnitude of 5-10 million each then where’s the issue.
There are a lot of shares on issue but unfortunately that’s in the past. You cannot go back in time and reuse that money so you need to look to the future. Either do something and move forward or lay dormant forever.
C
APG Price at posting:
0.9¢ Sentiment: Hold Disclosure: Held
