HIL was on the brink of bankruptcy before renegotiating all of their credit facilities which was announced several months ago and cleaned up many issues related to debt and availability. If you look closely, you will want to ask yourself, "Does HIL have enough cash and capital to move forward?" Are they making deals to sell off assets to keep their balance sheet in line and in good standing with Bank covenants?
Most importantly, as a shareholder you should ask yourself, what does the stock do if HIL needs more capital and issues more shares? How diluted will I further become and how low will the stock go?
Finally, compare that to the value destroyed by not executing a dal with Hills Health Group. The time is coming to pay the piper. I think you will see a request of the market to raise another $10-15 million soon and tank the price even more and leave you asking "why didnt they take the HHS deal instead of issuing more stock".
HIL Price at posting:
36.5¢ Sentiment: Sell Disclosure: Not Held