GREY:LFDEF - Post by User
Comment by
swissfrankson Aug 31, 2020 3:31pm
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Post# 31480651
RE:Financing
RE:FinancingYou are nearly right. Nobody lends money to a borrower that can't pay it back unless that person is an existing investor already owed many, many millions by UR and who is desperate to extract his money.
This is not a good news story. These dribbles of cash are almost certainly from a tired investor who is in too deep and has probably been told repeatedly that the big financing/sale of Diemos is around the corner. Unfortunately, he has been taken, just like the rest of us. The last financing died. A company like UR did not walk away from that financing to look for better terms. They are, and have always been so deep in the hole that they have absolutely never had any leverage to get better terms from a different investor or lender. Even the uninformed management team at UR must have always understood that.
They have been trying to secure new money for over 18 months without success. In this time period, the financing and the sale of Diemos has likely been shopped to everyone on the earth. It doesn't take this long to raise capital or to sell a business. If investors are seeing the deal being shopped around with no takers for a period of 18+ months, everyone knows that it is tainted.
The combination of time passing and the horrible, and ever worsening financial state of the company means that nothing is coming to save it. There may be something to pick over when bankruptcy happens, but any potential investors will certainly wait until all existing shareholders are wiped out, and then they will come in a look to see if there is anything worth salvaging.