RE: Spikeyj2 Jun 2020 12:33
based on what? — take a look at the cash position for this company.
they are surviving on short term loans as they weren’t able to raise
more by placings recently, so needed the loan just to fund the deposit
on that additional piece of aje they claim they want to buy. where on
earth would they get the money from to repay that loan, but also pay
the bulk of the required payment? - they have no cash to do that, so
it’s going to take massive additional equity dilution, and it’s going to
be hard to persuade punters to stump up without a big discount & /or
lots of additional sweeteners. meanwhile, they continue to have major
cash burn for BoD wages, when the income from the current aje wells is
still well short of paying off project level debt. plus, serious overhang.