RE:RE:RE:RE:RE:30 days to restructure......I like your contribution lenumero66. You should have contributed before!
Here is my take :
At the end of 2017 the total liabilities were $4,945,047, at the end of 2018 it was $5,795,665 and at the end of 2019 first quarter $5,971,995. In 2018 there was $459,894 in liabilities to the directors, was nil in 2017. The accounts payable was $2,430,502 end of 2017, $2,881,711 end of 2018 and $3,138,983 as of march 2019.
The 2017 financial situation was not good, we all know that. It is worst now, but by how much? 15 months after the end of 2017, the account payable is about 25% higher. They are late to their payments (not doing some of them since quite sometimes). We can ask why the creditors were good to wait for the 2017 $2,430,502 debt payment, but are now putting pressure on Argex 15 months later, with a 25% higher percent debt, but with a huge deal on the table (ECEC). They knew they would get nothing at the end of 2017. Now, with ECEC as a partner, they can try to be paid. And they can try to scoop as much of possible of the company. If you think it is nefarious.
Previously, some of the liabilities were paid with shares. They can argue that the sp is so low, they do not want to be paid with shares anymore risking a depreciation. And we can argue that Argex does not want to pay them with shares at this price, because of the dilution it will create. For the debentures, it is a bit the same. The debentures holder might not want to convert at this price, and it is possible that Argex is late to the interests payment.
I do not think it is the debt to the directors that is the problem. It all depends to who are the creditors and what are their intent. And what have they done with the shares they received as debt settlements. This is where we can put some conspiracy theory and think they prepared this event from a long time ago.
There is time for the debentures to convert, if we get a deal for a plant in China or in Vietnam.
After the ECEC NR, the sp did not move much. There was a huge wall preventing a higher sp. Maybe the market was waiting for some hard data, a revenue confirmation. Maybe, it was something else. If the sp moved more, it would have give the opportunity for some warrants to be exercised and brought some money. And now the sp being that low, it is way more difficult to do a PP. So again a bit of conspiracy theory, but we are now near a meaningful contract, but with less cash. Keeping by strategy the sp low after the ECEC deal announcement was certainly a good thing, if you were a creditors group trying to 'steal' Argex.
I continue to support Alnaimi. But, maybe he is now discovering that some friends were not friends finally. I hope he will fight back has hard as he could now.
Who are the creditors and what is their intent is crucial. Just being paid as any creditors should be, if ECEC can give some leverage, it should not be too much of a problem.
GLTA,
Tom