GrahamB wrote: Catching up, and enjoying summer and minimizing time on the computer which turns out to be a very very good thing.
Behind on the company, but I did read with interest the posts from Big Mac and others about The Insider purchases.
Usually, Insider purchases can be very important, because they can indicate that Insiders who presumably have much more knowledge the company workings than us, putting Capital to work, maybe a positive sign and positive for the company.(Although if there is news coming-that would be insider knowledge so I dont believe thois to be the reason for the purchases)
In this case, my conclusion, and it is my conclusion only, is that this is a necessary investment to keep the company alive, and It may even be necessary if they're going to encourage other institutional investors to put in significant amount of capital.
Why do I say this?
Rather than speculate about intentions, particularly in view of the past record here(quiet period, licence, sales…), I just look at the facts, importantly and specifically, at the company facts as posted on the recent financials
Bottom line they had a loss of 16 million, cash of 13 million, and STILL NEED 10-30+ million for the clinical trials…
The purchases by multiple insiders at the same time suggests it was coordinated. (again my opinion/speculation)
Heres the facts…
Assets-29,354,002
BUT. …..This includes building held for sale 11,922,750 (that is a illiquid investment)
So look at current assets
But CASH is 13,388,102
Need to look at the Cash Flow statement-to see behind the scenes
“Cash flows used in continuing operating activities for the six months ended June 30, 2020 were $11,489,236 and net loss (16,064,683)
...change is due to proceeds from sale of investments of $8,470,524
Cash flow provided by financing activities for the six months ended June 30, 2020 were $9,236,210 compared to cash flows “
Don’t forget about contingencies for legal matters coming up. And claims from suppliers(A dismissed contractor commenced a lien action combined with a breach of contract action in the Cobourg Superior Court of Justice in early 2019 claiming approximately $1,700,000 and “The Company has a commitment to restore the designated heritage building on the Company’s premises “
Not to mention the related party expenses such as the “$947,498 to a company owned by the CEO”
and dont forget about, dilution expected, and result on possible impact on SP….
All sources quoted OTCQX.com
So I do not just take the companies claim listed below, as legal writing as some posters here claim.
My opinion is this was a needed cash infusion to stay alive.
“If unanticipated events occur that impact the Company’s ability to complete development of its production facilities and carrying the planned clinical trials, the Company may need to take additional measures to increase its liquidity and capital resources, including issuing debt or additional equity financing or strategically altering the business forecast and plan. In this case, there is no guarantee that the Company will obtain satisfactory financing terms or adequate financing. Failure to obtain adequate financing on satisfactory terms could have a material adverse effect on the Company’s results of operations or financial condition. “
Again all my opinion-due your own dd and consult a reputable finacial advisor befroe investing, and certainly dont listen to any posters on these boards, especially a fool like me
G