Ann: EAS Advisors Appointed as Corporate Advisory Firm, page-22

Ok. But don’t attack me personally, or fling ad-hominem insults in my direction. I want to discuss the company, it’s projects & share price. If you don’t want to engage on this level just scroll over my posts. Cool?

In any case, I disagree strongly with the notion this is ‘just another cap raise’. Listed companies don’t usually allow their treasury to sink to the point where it becomes measurable in the tens of thousands of dollars, or the risk of insolvency is weeks away

‘Mr Top’ (can I call you choc?), you imply you’ve been in contact with the company, and they’ve disclosed certain information about the present situation and their future intentions? I haven’t. My opinions are based solely on my assessment and extrapolation of their mandatory ASX disclosures

(FWIW, I haven’t contacted mgmt not because I’m lazy or disinterested, but simply because I have no trust in them and would attribute zero credibility to any ‘off the record’ assurances made over the telephone)

And so, the fact KPO has allowed its kitty fall to such dire levels, and has seemingly engaged a specialist advisor to assist with fund raising efforts, compels me to draw three conclusions. They are as follows:

1. The company previously (late last year?) attempted, but was unsuccessful in securing (either on required terms or any terms whatsoever), debt and/or equity financing

2. Due to the (presumably) short amount of time before remaining funds are spent (eg cash outflows to execs) there’s unlikely to be sufficient time for a SPP or rights issue (to minimise impacts of dilution

3. Whatever scheme mgmt may be cooking up behind the scenes represents a last throw of the dice for KPO in its current incarnation. If it fails, it may well be all-over, red-rover

The SP isn’t remotely pricing in the risks of insolvency at the moment, imo. Why? perhaps because shareholders are complacent. Or the lack of volume has created a liquidity ‘lobster trap’ idk

In any case, I suspect (in the absence of a left-field game-changing announcement) the wheels will begin to fall off next week and we’ll begin to see some serious share price erosion

I realise this assessment may be confronting for some holders. I invite my views and assumptions to be interrogated and challenged. On the other hand, if anyone is interested in attacking or bullying me, don’t bother :-/