The Domacom ASX announcement released on the 28th December 2017 stated that Domacom had a number of debt funding proposals underway and Domacom will update the market when these debt arrangements if and or when they become successful in January 2018.
During January 2018 , Domacom states that they will announce whatever cost cutting reductions to operating costs will need to be made upon any ( if any) Debt liabilities if they eventuate.
In light of and based on Domacom's last Quarterly update to the ASX , Domacom expected that they would have seen a $700k cash position as at end December 2017. Nowhere in that ASX release of 28/12/17 does Domacom state how much cash is in the Bank as at that date, Despite the Headline Announcement to the ASX titled update to " Cash Position".
Based on Domacoms most recent numbers to the ASX, by the end of January 2018, Domacom will have about $350K in the Bank.
IMO at some point of time , matters relating to continuation of trading become paramout and imperative, given no details of any signed Debt Funds or their Terms and Conditions have been released to the market.
Simply , it seems that nothing has been consummated or executed , that the market has been made aware of.
IMO where circumstances might exist that Debt Funds may be obtained from any near or related parties ( or for that matter any party), then IMO this could create a priority to those debt holders that in the event of a " Trigger Event" which may deliver to those Debt Holders a Deed of Company Arrangement ( DOCA) to control Domacom, which may result in in the shares of Domacom potentially may having limited or no value.
IMO The CEO Arthur Naoumidis should either stump up a reasonable amount of cash to pay for his $17,ooo,000 of shares that he paid 50 cents for, or simply resign and depart and leave gracefully with the opportunity for a new team to come into Domacom without a new Debt burden and the risk of a DOCA occurring .
I recall that the CEO at the time of the initial IPO advised shareholders that he had raised enough capital to take the Domacom through its first three years and pre float it was reported that Domacom was eyeing a Market Capitalization of $80,000,000 M Plus, ....
Honestly, IMO I think It's time to call it a day for what remains of the Domacom team and depart, forthwith. Resilience of the incumbents can only go so far , and certainly not at the expense of shareholders who paid substantially more than the CEO who paid at less than 1 cent per share.
Apologies for the time of posting as currently overseas, but will look tomorrow to see what transpires with DCL's releases to the market of the details of the debts they are proposing with particular interest on the T& C's of the Factored Financed of the ATO R&D, prospective rebate... That should be a Pearl'a
DCL Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
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