RE: waiting to buyEarlier in the year Dr. Parra presented RCT to Eric Prott in Toronto. Eric Sprott immediately wanted to own 10% of the company. Dr. Parra did not want to dilute the company so he and several board members sold some shares to Sprott asset management. We have to remember that RCT was in production and was profitable in 2007. This was expected to continue, there was no expectation of needing to raise substantial additional funds. The plan has always been to fund growth out of cash flow. The company certainly does regret not having sold shares to S.A.M. and diluting to raise capital. They certainly did no expect the stock market crash though. You can see the 1 million share cross day on the chart,btw.
You are right that their working capital position is weak, however, they have announced this $4 million financing. Assuming that this closes this will no longer be the case.