Quattro Exploration and Production Ltd QEXXF

RE:RE:RE:When will QXP be under creditor protection?

[elgaveeno]

QIS is PAID to provide IR by QXP. They have no financial knowledge and do not do independant analysis. This is evidenced by the fact that even they consider the Liability associated with the sale as something to add to the Asset column. It's not. The original sale contemplates $8M in cash and $4M in shares at $0.50/share from a shell company trading at $0.10/sh but really should be at less than $0.05/sh. But still, the only cash position is the $8M. The increase in the asset sale to $30M is only the increased Liability transfer of additional shut in assets. 

So, the $8M will go towards the bank line first, and to creditors second. $8M doesn't cover the full finaincial obligation of both, nor will there be any left over for working capital. Since the company is not making positive cash flow, it will need the $8M AND new equity to make up the balance.

In short, no one is going to back this company or it's mangement. It is insolvent, with short and long term obligations to both unsecured and secured creditors. The reserve base value is less than the liability of the producing assets. Selling at $0.06/share today is a massive premium to the company's current value.