As per the revised ASX announcement on the "completion of the rights issue", the money raised in the last rights issue was not the fully subscribed amount (only raised $369,162 from rights issue applications and $197,778 in shortfall) (ref 1).
Looking at the costs for BPH moving forward:
Column 1
Column 2
0
1
Cash at bank (31/12/17) (ref 2)
$225,000
2
Funds raised in rights issue (Ref 1)
$566,940
3
4
Total Cash
$791,940
5
6
Nominated Liabilities
7
Forecast costs to end March - BPH Appendix 4C uploaded to the ASX on 1/2/18 (ref 2)
($120,000)
8
BPH accepted debt to MMR (ref 3) – to 31/1/18
($127,647)
9
Nominated Rights issue costs (ref 4 – ref to section 9.6)
($46,044)
10
11
Subtotal Nominated Liabilities
($293,691)
12
13
Total Cash less Nominated Liabilities to 31/3/18
$498,249
14
This means that there is a total of $498,249 available for:
working capital beyond 31/3/18
investment into Oil and gas
investment into Cortical and HLS5
However, in the 31/12/17 BPH Appendix 4C (ref 2), there is noinvestment nominated in the forecast costs for the next quarter (to 31/3/18).
These remaining funds will also need to be used as working capital beyond 31 March 2018. In the BPH Appendix 4C from the June quarter last year (Ref 7), “the cashflow used in ongoing activities”, for the June quarter was $222,000. This has not been included in the above calculations.
In the above nominated liabilities, the BPH forecast costs to 31 March 2018 of $120,000 (as nominated in the Appendix 4C – ref 2) have been used. It is expected that these forecast costs should include:
BPH Admin fees to Grandbridge
David Breeze MD fee
Loan payment to 20% associated company
Half year accounts audit costs
Legal fees (to cover legal costs associated with Stat demands from MEC, Goh Hock, Deborah Ambrosini and any other issues)
Any “loan repayment” transfers to Grandbridge as Grandbridge only has $6,000 cash at 31 December 2017 (GBA appendix 4C – ref 6), although debt reduction was not nominated as a use for the raised funds in the entitlement issue prospectus (Ref 4)
In addition to the above costs, there have been three stat demands issued against BPH. If these are successful the result as follows:
Column 1
Column 2
0
Risk items – Stat Demands
1
MEC Stat demand
($225,486)
2
Goh Hock Stat demand
($145,832)
3
Deborah Ambrosini Stat demand
($117,481)
4
5
Subtotal Risk Items
($488,799)
6
7
Total Cash less Nominated Liabilities and Risk items to operate BPH beyond 31 March 2018 and make nominated investments
$9,449
8
Questions for the BPH Directors:
What are the size and timing for the nominated investments into Oil and Gas and Cortical and HLS5 (as detailed in Ref 4)
Why $147,141 (73,570,560 shares) of shortfall share applications were rejected (ref 1) when the company could use the cash to continue operations into the next financial year
When the 31 December 2017 Appendix 4C (ref 2) will be re-issued to reflect the corrected capital raising as nominated in the revised “Completion of the rights issue” document (ref 1). The note beneath item 9 is now incorrect for both the received subscriptions and shortfall amount.
