Ian2382000 noticed what I what I see with lights flashing and bells ringing. The Pro Forma Statement of Financial Position (p28) has"
Current Assets: $6,486,550 Current Liabilities: $7,738,325
of which Trade Payables amount to $4,890,257
This is of course what was in the HY report as at 31-12-13. Is it just me or does anyone else think the proforma financial statement should have changed - even just a little bit for the 3 months since then.
In the assets part, while Permian is sold for $5.35M (subject to adjustments which of course they can't even estimate), $500K is held in escrow for litigation. There remains scope for purchase price to reduced by up to 10% based on title defects and environmental liabilities.
The AGM presentation (Nov '13) listed "new capital requirements" of $3.2M and that "current cash flow used to repay vendors who are on payment plans/property liens". Doesn't seem to have moved very far given Trade Payable as at Dec 31, 2103 were $4,890,257 and at July 31, 2013 i in the AR they were $5,050,262 which is a reduction of $160,005 over 6 months.
Net Net - they have no money. Post consolidation OGI will need a CR. Do the CN holders sell it down again - who would contribute equity capital? (not me).
May 19th - in my diary.
I wish just for a single post that HC would waive the profanity usage so we could all truly say what we feel.
CSMFBs COL!
GGP Price at posting:
2.5¢ Sentiment: None Disclosure: Held
