We acknowledge receipt of your letter dated 18 May 2017 regarding the Company’s Appendix 4C quarterly report for the period ended 31 March 2017. In response to each of your questions, we advise as follows:
1.§Yes, the Company presently does expect to continue to have negative operating cash flows for a period of time based on its current operating expenditure. The Company remains committed to its commercialisation objectives and the timeline outlined in the latest Appendix 4C, which will see operating cash outflows continuing in the near term.
2.§The Board is very mindful of the need to fund the Company’s operations and is taking a number of steps to achieve this. As outlined in the Appendix 4C, Dyesol is in discussion with state government(s) departments to determine what assistance may be available to support the Company’s activities, including the establishment of the organisational structure and infrastructure required to build and operate a purpose built, dedicated prototyping facility. The Company has also made considerable progress on other opportunities for significant federal government financial assistance, particularly in relation to technology diligence, and is currently evaluating the best options to minimise shareholder dilution and maximise its commercial progress. High-quality strategic investment opportunities exist from both local and international investors, and discussions are continuing with these parties.
3.§The Company fully expects to be able to continue its operations and to meet its business objectives on the basis of the success of one or several of the abovementioned fundraising initiatives.
4.§The Company confirms that, to its best knowledge and belief, it is in compliance with ASX Listing Rule 3.1. and that there is no information that should be given to ASX about its financial condition in accordance with that Rule that has not already been released to the market.
5.§This response has been approved by the Board.
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