These are the undeniable facts!For those on the sidelines and any understandably impatient hands getting weaker
... The signs area all here. No need to even read between the lines just need to open your eyes. When they build it, investors will come. Patience will prevail. Those here at these levels will be rewarded significantly long term.
Previous management was corrupt with exorbitant administrative costs and incompetence with a business model that was not sustainable and drove this going concern into a extremely dire position.
Since the incompetent exposure and subsequent stock value destruction in May 2015 multiple cost saving measures were implemented in August however issues with agent receivables caused reduced revenue that admittedly brought LRN to the verge of being dissolved with very little potential future past December 2016.
On this announcement the bold were able to purchase millions of shares at 0.5c ~2c and thus we have many penny flippers willing to sell at these levels stunting any near term stock growth and a hurdle to say the least to overcome.
Enter the new management with Big Mac at the helm with his proven competence implements additional and more significant cost saving measures including but not limited to the removal of multiple employees with connections to corrupt and incompetent previous management and in short time restores faith with BMO.
Under Big Mac in less than 5 months the company goes from the absolute verge of bankruptcy to raising $6.5 million and significantly restored faith with BMO to convert debt into a 4 year loan (That alone proves resurrection is on the forefront).
Senior Management personally loans $425k for operating expenses. Yes it comes with a pretty sweet return however I doubt Big Mac would offer $425K of his personal finance to a dead company unless he was absolutely certain of a return. This shows significant confidence from management in the resurrection on top of the $6.5 million and revised BMO loan terms
EBITDA loss went from over $5 million in Q2/15 to under 2 Million in Q4/15 and this was before Big Macs significant cost saving measures implemented. Q1/16 will prove to those on the sidelines that this will again be a growing concern and quite possibly even profitable by Q2 or Q3/16.
Yes revenues are down temporarily as although improving difficulties with receivables continue but new management seems to be cutting ties with the excessive commission fees by Korean agencies and focusing on a more organic approach which will eventually offer significantly improved margins per student. Id say we can look for a significant image rebranding overseas to assist with enrollment.
Watch for this ball to roll hard fast but not until after the 6.5 million placement is secured and all Big Macs buddies firmly in position at a significant discount to the true short term value of the company. The rich get richer and im content with riding their coattails.
Consolidation seems to be almost inevitable however as all competent public company management knows consolidation should only be implemented after proven upward direction of value and I foresee Q2/16 being the catalyst for a positive consolidation or even optimistically Q1/16.
With the incoming $6.5 million, the $425K personal loan from "senior management" (My guess is obviously Big Mac"(Only one with the resources for that kinda change) and the renewed faith from BMO and the conversion to 4 year loan this ship has been clearly turned and is being resurrected behind the scenes. Q1/16 should start the engines and then full steam ahead after the $6.5 million is fully secured.
And last and definitely least we obviously have some bashers here (One who cant even speak English lol) with clear ulterior motives that we should all focus on ignoring and will only vanish when KGIC proves itself. Until then theyre just background noise that I will never acknowledge again Even their inevitable bash to this post. Shoo flies, this shiat stock has been cleaned up'd and polished. No need to continue festering around with your sad existence.
GLTAL