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Antoninasson Apr 03, 2017 10:40pm
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STOCKWATCH ARTICLE SAYS IT ALL
STOCKWATCH ARTICLE SAYS IT ALL
« on:Today at 10:07:47 PM »
Diamonds & Specialty Minerals Summary
April 3, 2017 21:14 ET
Will Purcell
Glenn Kelly's Orbite Technologies Inc (ORT: $0.235) has found new ways to disappoint the market with its high-purity alumina plant (HPA) on Gaspe peninsula. The company was halted today on word it has filed for creditor protection. That sad tale comes on the heels of the company's dismal news after the close Friday. Mr. Kelly, president and chief executive officer since 2013, said that key components of the company's plant appear to limit potential production to less than 1.2 tonnes of HPA per day, far short of the three-tonne-per-day target. Therefore, Orbite says that "operation will be suspended" while it solves the problem. The solution, Mr. Kelly believes, involves spending another $8-million and taking eight more months to rejig the plant so it will work according to plan.
"Plan" is a four-letter word in more ways than one with many of the company's retail shareholders, as even in the best-case scenario the company is a long way from getting its HPA plant into production. Mr. Kelly's predecessor, Richard Boudreault, had initially promised the facility would cost between $26-million and $30-million, net of tax credits, and that it would be ready late in 2012. Orbite has already spent over $125-million net of tax credits, and it is now looking toward 2018 as its best-case scenario for reaching production. Worse, Orbite needs more cash in a bad way, and Mr. Kelly says the company will not be able to "meet certain covenants" that are conditions of its existing debt facilities. He says that Orbite is evaluating "all available legal recourses and financial alternatives" to allow it to get its plan back on track. Bankruptcy protection is apparently its first step.
Logged
"Success is never final and Failure never fatal. It’s courage that counts."
« on:Today at 10:07:47 PM »
Diamonds & Specialty Minerals Summary
April 3, 2017 21:14 ET
Will Purcell
Glenn Kelly's Orbite Technologies Inc (ORT: $0.235) has found new ways to disappoint the market with its high-purity alumina plant (HPA) on Gaspe peninsula. The company was halted today on word it has filed for creditor protection. That sad tale comes on the heels of the company's dismal news after the close Friday. Mr. Kelly, president and chief executive officer since 2013, said that key components of the company's plant appear to limit potential production to less than 1.2 tonnes of HPA per day, far short of the three-tonne-per-day target. Therefore, Orbite says that "operation will be suspended" while it solves the problem. The solution, Mr. Kelly believes, involves spending another $8-million and taking eight more months to rejig the plant so it will work according to plan.
"Plan" is a four-letter word in more ways than one with many of the company's retail shareholders, as even in the best-case scenario the company is a long way from getting its HPA plant into production. Mr. Kelly's predecessor, Richard Boudreault, had initially promised the facility would cost between $26-million and $30-million, net of tax credits, and that it would be ready late in 2012. Orbite has already spent over $125-million net of tax credits, and it is now looking toward 2018 as its best-case scenario for reaching production. Worse, Orbite needs more cash in a bad way, and Mr. Kelly says the company will not be able to "meet certain covenants" that are conditions of its existing debt facilities. He says that Orbite is evaluating "all available legal recourses and financial alternatives" to allow it to get its plan back on track. Bankruptcy protection is apparently its first step.
Logged
"Success is never final and Failure never fatal. It’s courage that counts."