RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:I don't know what it takes
palinc2000 - (4/27/2024 1:26:29 PM)
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:I don't know what it takes
What does this have to do with replacing some board members
There is no convenant related to directors
The going concern clause is a requirement by the auditors as there can be no assurance that financial metrics will not be breached
There is a margin of error which prevents ftom defaulting ftom a drop in sales mainly because expenses are decreasing .... Sales are the most important factor as cash flow is derived ffom sales but sales guidance are just that .... we need rcash flows from actual results not projected results
Of course if they meet the Ebitda guidance for the year the going concern clause will disappear
SPCEO1 wrote:Yes, that is what I am saying. Hopefully PWIB will comment on that as I am pretty sure he can offer better insight into this than myself. I don't think it has a high probability of happening but I am not sure what all the covenants might be that THTX might yet break. There is a reason why their financial filings still talk about a going concern risk but I am hopeful that language can soon disappear. THTX is in a much better financial spot than before the IQ offering and that should limit the risk of breaking another covenant. And if they were going to break one, it likely would have occurred in the first quarter when sales plummeted. So, this is probably very low risk stuff at this point if sales are rebounding as they have indicated they would via their guidance. But until that language does disappear from their filings, it is worth thinking about what it might mean. A lot depends on Marathon's attitude too should another covenant be broken. In the past, it was in Marathon's best interest to work with THTX to sort out covenant breeches since THJTX did not have the cash on the balance sheet they have now. With more cash now, it may be attractive to Marathon to bankrupt them on any further breech since it would be easier and lower risk now for Marathon to maximize their returns from the bankruptcy process. Now, Marathon has to consider their reputation as well and if they behave super aggressively towards THTX when that is not called for (and it is not called for in THTX's situation), they could easily scare away future business. By working with THTX, they actually enhance their reputation with future potential lenders. Since they will likely get all their money back in any event with THTX, they really have no reason to bankrupt THTX other than greed as their maximum possible return might be via what I have suggested via bankrupting and relisting. But with lenders like Marathon, greed is defintely a concern which we should consider.
Trogarzon wrote:Reading this ain't encouraging at all. So basically you are saying Marathon would bankrupt us and relist the company of wich we would'nt own any shares. Is that. Loose all.
Agree Mr Palinc!
I am more and more suprised/astonished on what SPCEO1 is writing. He is "cornering" himself to escape responsibility!!
Vote them out, they basicaly ruined/bankrupted the company (hus words.....!!!!!). It can't get anu worse!