GREY:EORBF - Post by User
Post by
RichardBoodrowon Mar 31, 2016 12:40am
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Post# 24713991
MD&A on SEDAR - BOTTOM LINE DELAYS & NEED MORE $$$ $MONEY
MD&A on SEDAR - BOTTOM LINE DELAYS & NEED MORE $$$ $MONEYQUOTES FROM OPF
Re: MD&A on SEDAR
gegetrane: Study for 5tpd and front end are delayed.
Shareholder Equity: Well the one thing that caught my eye was the upcoming first financial covenant which must be met with midcsp financial. July 31st is the date. Otherwise seems to be same old bs , need more money and we're almost there.
Investor1954: Saw that also. If the plant is not operational and generating cash flow by July 31, 2016, then Midcap can seize Orbite's assets. So July 31, 2016 seems to be a a do or die date.
On March 15, 2016, the Company announced that due to the complexity of the piping installed and to be installed at its HPA Plant, and the tight quarters for installation, piping installation advanced at one third of the budgeted and standard installation rate. A comprehensive review of costs incurred to install those systems and those required to complete specialty piping installation, notably in the decomposer and crystallization sectors, indicated that capital costs initially projected must be increased by approximately $9.9 million, to incorporate the impact of the slower installation pace. This brought the revised total external capital cost budget of the project to $56.2 million from $46.3 million. Consequently, and in order
to limit construction costs and manage its working capital, the Company ended overtime work and indicated it may postpone certain activities, which will push back the start of commercial production into Q2 of 2016 instead of Q1 as previously contemplated. The Company’s current financial resources are insufficient to cover such additional construction costs, and the Company is exploring financing alternatives, such as leveraging its estimated $5.6 million of 2016 Investment Tax Credits as security for a non-dilutive bridge loan, as it has done in the past.
On March 21, 2016, the Company announced that due to additional financing requirements to complete its HPA production facility, management temporarily scaled down the number of external contractors on site to reduce working capital requirements. While this slows down certain construction activities, Orbite employees continued commissioning activities as described in the Company's press releases of March 7 and March 15, 2016. Additionally, the Company announced management was reviewing its project execution structure to promptly address deficiencies from its project management and engineering teams.
Concurrently, Management was working on a number of financing alternatives with its existing financial partners, including discussions with the Government of Qubec and Investissement Qubec. Financingalternatives may include leveraging the Company's 2016 Investment Tax Credits, which are estimated at $5.6 million, as security for non-dilutive debt, along similar lines as the Company has managed in the past.
MANY QUESTIONS STILL UNANSWERED. GLENN KELLY SHOULD BE IN THE HOT SEAT TOMORROW. BUT WHO WILL HOLD HIM ACCOUNTABLE? NOT THE AMF OR IIROC. THE GOVERNMENT AND IQ WILL PROBABLY WASTE MORE TAX PAYER AND PENSIONERS HAR DEARNED MONEY AND CONTINUE TO THROW GOOD MONEY AFTER BAD MONEY. EVEN THE PRESS IS NOT HOLDING ANYONE ACCOUNTABLE AT ORBITE. WILL WE EVER KNOW WHY WEEKS AFTER ORBITE ANNOUNCED THEY HAVE MORE THAN ENOUGH MONEY TO COMPLETE THE HPA PLANT THEY ANNOUNCE A SHORTFALL OF 10 MILLION DOLLARS? LET US SEE TOMORROW IF MR. GLENN KELLY WILL TELL US THE WHOLE AND REAL STORY?