Yeah would have been the final straw for me @Seymourbutts if they were to do a cap raise.

I went back to the transcript from our last meeting with Jason in August of 2023, and asked my AI friend Claude what was said at the time:

Based on my review of the transcript, Jason Cooper made the following key points about Envirosuite's funding requirements:

1. He firmly believes that based on the company's current trajectory, they have sufficient funding and will not need to do a capital raise. 

2. However, he acknowledged that the market seems to be pricing in an expectation that Envirosuite will need to raise capital. He thinks this is why the share price reacted negatively despite the company delivering strong results.

3. Cooper said if they found a compelling reason to raise capital, they would come back to the market to present their case. But at the moment, they don't see a need to raise funds.

4. He highlighted the company's positive turnaround in cash usage over the last 12 months and the additional annual recurring revenue and project revenue as reasons they are well positioned going forward without needing more capital.

5. While not ruling it out completely, his view is that Envirosuite can avoid raising more equity capital through continued scrutiny of spending and driving improvements in the underlying business. He plans to continue delivering quarterly growth.

In summary, the CEO firmly expressed his belief that Envirosuite does not need to and is not planning to raise more equity funding in the near-term based on their current financial position and outlook, despite the market seeming to expect a capital raise.

Regarding Envirosuite's debt facility, Jason Cooper mentioned the following:

1. They have spoken about the option of taking on debt and how debt could support the company's growth.

2. In their business model, especially in the industrial space, some customers are asking Envirosuite to provide IoT equipment and include that in the subscription or annual recurring revenue model. While Envirosuite does this to support customers and drive growth and implementation, it comes at a cost to the company.

3. Cooper indicated that debt financing could help support the acquisition of this equipment to include in their recurring revenue model for customers.

4. He said they will likely make an announcement to the market within three months about the debt facility and what it looks like.

So in summary, Envirosuite is actively exploring taking on some debt financing to support their growth, especially in terms of providing IoT equipment to industrial customers as part of recurring subscription contracts. The company plans to inform the market about the details of a debt facility within the next three months.

So this is all consistent. Still, I would have preferred them not to need any additional capital and the cost of that money isn't cheap (at least 11.75%pa) -- although cheaper than a cap raise given the current share price. An optimistic view might be that they are needing to buy a lot of hardware to fulfil bundled contracts. And the lender (Pfg) seems to be happy to relax some of the terms which may be a reflection of their confidence with EVS.

Still, i'm very much ready to see some sustainable positive cash flows!

That's a lot of exy debt for a company that hasn't made a buck in almost a decade.

Smells a lot like the CEO made a silly promise about no more cap raises and has painted himself into a corner.

So they're paying:

1.5% establishment fee

~12%/year

They have been issued with warrants worth $1.25m with an exercise price of $0.055, but they have also issued a put option to the lender to sell those warrants back to the company at $1.25m at expiry. In effect another 10% of the value of the loan.

Sheesh!