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“Raising share capital is expensive and should be generally used for long-term investment, not short-term cash management.”
How this reason would turn our deficit cashflow to positive?
Please explain the reason thankyou.Share capital is a permanent injection of capital (though it can be repaid if the directors decide).
So, if there is an outflow of $2m required to repay a loan and there is not enough cash a solution is to raise about $2m in share capital and use that cash to repay the loan.
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