RE:Don't get me wrongThe quarterly states that in Feb 2021, PLUS needs to pay out the CAD$25 million 8% debentures.
PLUS does not have this money.
We are not saying they are trading insolvent, just that they have employed PI Financial group to try and find a way out of this impending debt crisis.
Here is the Quote from the recent quarterly.
(Quote)
PLUS is actively working towards a solution to address the maturity of the Company’s 8% unsecured convertible subordinated debentures (the “Debentures”) totalling CAD$25M that mature on
February 28, 2021 and expects to engage PI Financial Corp. to support its efforts related to this matter.
(End Quote)
PLUS is not profitable, so cannot pay out these debentures from revenue.
As a result of reading the quarterly, we have therefore requested from the company, a clarification on whether PLUS intends to have a Capital Raising, in order to acquire additional funds for paying out the maturing debentures.
In this event, our estimate predicts the capital raising may involve up to 100% dilution of current shareholder value, hence our enquiry.
We have also requested information on how the company plans to remain a going concern, should the repayment of the debentures be defaulted on, and what risk management the company has initiated to protect shareholders.