GREY:ARGEF - Post by User
Comment by
morriconeon Jun 19, 2014 1:03pm
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Post# 22675945
RE:RE:RE:RE:RE:timing
RE:RE:RE:RE:RE:timing
The company's cash position was less than $7 million at the beginning of this year and down to $4 million by the end of the first quarter. They are burning through more than $1 million per month so I would guess they are pretty much broke right about now (maybe a million or two left?). With this in mind the financing is not a surprise and it will give them breathing room to the end of the year. The recent dumping of some non-essential bodies also shows that they are trying to control expenses.
Contrary to silly speculation about how this financing is a good thing having something to do with the main financing the reality is that this money is simply needed to pay the bills and keep the company from going under. The main financing has clearly been more difficult than expected and is taking far longer than expected and planned for. The company has had to scramble to come up with some operating cash to buy more time.