Sorry illumination 1, I'm out!
From all the reading + the voices that were coming out of the wind lately, I knew that dealing with the first nation would be huge. I taught that the 4 millions raised on December 15 was not enough to close the deal with them. So, EHT had to come out with those debentures for 3 millions on March 5/2015. At that moment, I said to myself, well, we're in business and for a bargain. Unfortunately, it was not the case. The delay in starting the Hazel McCallum public school rooftop was easily explainable, negotiations were in course. In the November 3/2014, they've said that the start up was for January 2015, but after, they raised 7 millions and postpone it until March and since they had to conclude that deal I new it would have started later on in April..... There were many obstacles to conclude the deal. First, Solar income fund had to be out of the way (I said to myself, since the founder of the fund, M. Paul Ghezzi has is entry in the found, that shouldn't be too hard. Secondly, we also had to come to an agreement with Adelaide Solar Energy and buy them out or give them some number of installments or all the installments + some money for the 20 years contract with the Ontario FIT 3.0 program. Thirdly, and the toughest deal, was to buy the 176 contracts that they got from the FIT program. Those 176 contracts went down to 143 for probably a good reason that I've heard on the street somewhere (since the high cost of photovoltaic solar panel installment on rooftops, you got to make sure that all the roofs you put it on have been renovated or will be in the next 2 years, after consultations, they must have conclude that 143 school was a safer number), the district of Peel where the project will be done, has roughly 300 schools. For the last 10 years, negotiating with the first nation has become harder, they don't give easily their Rights like they used to and they are well inform on the 20 years revenues they got in their hand (by the way, in my humble opinion, I'm glad that First Nation are finally getting their fair share of the pie. Also hope that they also asked that 5-6-7 employees that will installed the panels would have to be Amerindian). So, the $19 millions they have to come up with in 30 days is too much money for a single PP with the actual SP.... Time is short, the SP is low, the PP is really high and the Share dilution will be so huge, I can't imagine this one recover from those highly risks. Plus, don't hear what's happening in Africa.... Suppose to sell 25 000 Ener Cube per year. Well, if they sell 4000 in 2015, I will be the first surprised..... Don't forget what they said in their 2014 financial statements (pages 12-13).................... Going Concern Financial statements are required to be prepared on a going concern basis unless management either intends to liquidate the Company, or cease trading, or has no realistic alternative but to do so within the foreseeable future. These consolidated financial statements have been prepared on a going concern basis. The going concern basis of presentation assumes that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of operations. Management has no plans to liquidate the Company or cease trading, nor does Management feel it has no alternative but to do so within the foreseeable future. The Company will continue its operations for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments through the normal course of business. The Company’s operations and projects are funded through a combination of operational revenues, debt and equity financing. The Company’s ability to fund future operations and commitments could be dependent upon market conditions that influence its ability to obtain additional financing. Management believes that it can access capital through the issuance of financial instruments to the public markets to meet its working capital needs. There is no assurance that the working capital will be sufficient to meet the Company’s future needs. There are uncertainties related to market conditions and events that may cast doubt about the Company’s ability to continue as a going concern, therefore, it may be unable to realize its assets or discharge its liabilities in the normal course of business.