As at 30 June 2018, GMC had $4.3M cash, with $5.5M cash...

As at 30 June 2018, GMC had $4.3M cash, with $5.5M cash estimated for the next quarter.
It also has $9.0M debt via a convertible note fully drawn down
It has a $7.0M stand-by facility

The terms to the Convertible Note are
The PT Gulf Convertible Note shall bear zero interest from the date of issue until 31 August 2018 (Maturity Date). The Convertible Note will automatically be converted into 25.1% of the equity of PT Gulf by way of
new shares to be issued by PT Gulf to PT JGI (Project Investment) upon achieving the following
conditions precedent (Conversion CPs):
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The parties will endeavour to satisfy the Conversion CPs at the earliest possible time and in any case not later than 31 August 2018. If the Conversion CPs are not satisfied or waived by 31 August 2018 (or by such later date, if any, agreed by PT JTS), the principal of the PT Gulf Convertible Notes becomes repayable by PT Gulf, together with interest of 15% per annum from that date to the date of repayment. In such an event, the principal on the GMC Converting Notes and any monies payable under the Standby Facility also become repayable.

If you look at GMC's announcements over the past 3 years - they very often miss their deadlines.

The risk of not satisfying the conditions precedent by 31 August 2018, is that they lose the stand-by facility and are forced to pay back the note (which they don't currently have the cash to be able to do). This is catastrophic in consequence.

So, on August 31 208 (6 trading days away) one of two things happens
1. The conditions are satisfied and the notes convert to equity. GMC relinquishes 25% of the project for $6M.
2. The conditions remain unsatisfied. In this scenario, GMC lose the $7.0M stand-by facility and are forced to pay back the Convertible Note (which they don't currently have the cash to be able to do).

My guess is it is the latter - perhaps this explains why they need funding from Acuity Capital when they have a $7.0M stand-by facility??

Interesting next week !