RE: Warrant FCO.WTThe deadline for project financing has been extended another month to late November.
Even if the ICF does not get its financing, Formation will still be an excellent investment.
By my calculations, Formation will still have more than $50 million in cash and cash equivalents at the end of this year, assuming that the financing issue is not successful this year.
All expenditures will cease to preserve capital.
Formation will also have a profitable tolling mill ( the Sunshine ) that so far has sufficient cash flows to fund G & A expenses.
The operating mill is valued above $20 million which, along with its $50+ million in cash, would give Formation a hard asset value of close to
.80 per share.
But, chances are very good that a letter of credit garanteeing the current $79.5 million in Stimulus bonds will be forthcoming by the Nov deadline.