RE: Can 4d get cash together without selling parts?27 Jun 2022 11:38
The thing is Bluebelly the info on the dire cash position seems to be clear in the annual report.
My main concern was always whether or not the $7.5m from Oxford that could not be spent had to be deducted from the year end cash balance. The way it was worded seems slightly unclear but reading it again the other day it seems clearer that it did need to be deducted and is so stated.
RE: Can 4d get cash together without selling parts?27 Jun 2022 11:04
I wonder whether their shareholding bought at 110p influenced their decision to avoid raising funds last year as that would have meant dilution at a lower price than what they bought at. Did they act in the best interest of the company as a whole?
There was also an asymmetry of information regarding disclosure of the loan terms. UK shareholders were not made aware that the loan terms had been published in an SEC filing, whereas US investors like Oliveira would have known.
They basically mortgaged the company for $5m cash to play with. And then paid a high interest rate on the full amount of $12.5m despite having to keep $7.5m in cash.
I believe their motive for this was to make them look less desperate when approaching the market to raise funds. But it backfired.