fmg investors may have wished that they had invested in this little baby. fmg shares are in a trading halt, and it was reported that the company was in talks with its bankers.
this gda baby is not in a trading halt, and despite being in a precarious financial position, the report indicates that a related party will provide ongoing loan funds to cover liabilities and expenditure commitments .
apart from the above, gda have a working capital deficit of about $700,000. since balance date, the company has raised $175,000, but costs would have been incurred - so maybe that all balances out.
a one for one issue at 0ne tenth of one cent would barely raise enough to cover the working capital deficit. indeed, such in issue would fail - so maybe the plan is for a 4 for 1 issue at about one 20th of 1c.
one thing for certain, is that this remains a ¨rolled gold tax deduction¨
GDA Price at posting:
10.0¢ Sentiment: Sell Disclosure: Not Held
