RE:RE:RE:RE:RE:You have probably seen this but here it is ...Aside from going after the SDI business, where else would those recent millions be going (cause your correct, they are not as yet servicing the debt)...I mean the product is already developed (some customization expense)...some of those recent millions are to keep the lights on granted but only a portion (Im assuming)...
So you mention double the debt since this business plan started (going after SDI revs)...ok...but what was the targetted revenue back then...I think it was around $140m (ballparking) for the first SDI...that SDI currently sits at $170m and likely closer to $200+ when all said and done...then there is SDI #2...rumoured (weak I know) to be over $100m (some say as large as #1)...so while debt has doubled, pipeline revenue now sits somewhere between 2 and 4 times where it was....loosie goosie numbers but you get the idea....
ctblizzard wrote: One would hope so but there really is not much cash being spent (at least in terms of released financials so far). It is basically all rolling up previous debt, creating new debt with the interest that should have been paid before being lumped in.
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The most recent few financings could have spent spent some money on good stuff but we do not know yet.
I think if people are wondering why this stock was 78 cents back last August and only 37.5 cents now it is because of the deteriorating financial condition of the company. That wont play out so much immediately as it will over the medium term when money is raised in a private placement or other things are done etc.
The debt hole was about 16 million a year ago and about 30 million last financial end of 1st qtr. However we have had two borrowings since then for 5 million (back in April 2016) and 3 million just recently.
This is why time is critical and finding out about the Canada financing is a buy/sell decision.
Vertex is not worried they essentially own this whole company now by controlling the financing.