RE:RE:RE:RE:Q2 financials out this eveningclassicact, I dont think your imagination is in overdrive, as the there are so many unknowns that make it difficult to paint the entire picture.
There is a vast difference between the 2 operating segments of this corporation, and yet oddly they seem very connected where funding is concerned. Potash / Real estate investments
"The Company operates in two reportable operating segments, being the acquisition, exploration and development of mineral properties and the investment in real estate projects in Canada."
From Western Potash to Western Resources to 0907414 BC Ltd, and then over to the subsidiarys on the real estate side it it extremely difficult to know who the players are, the portion of financing proceeds going to each entity, and what portion of the corporations assets are held within each entity.
The total asset value of the real estate segment is reported at $36 million with $15 million in liabilities, and yet $35 million of $40 million credit facility has been drawn down since, with an increase in liabilities on the resources segment of approx $40 million being reported as of June 30, 2020.
Even if Western divested their entire real estate portfolio, the proceeds from those assets would not come close to paying creditors for phase 1 construction to date.
I dont know why, but I was under the impression that the Milestone phase 1 pilot project was fully funded through the September 12, 2019 $40 million credit facility, as that was a primary goal of Western Resources, but after reading the latest financials, there is approx $30 million outstanding for construction services already rendered, which would suggest the majority of this project to date was built on credit.
The difficulty now will be finding an investor who will inject the required capital to pay for what has been already built, but also the $20 million remaining to finish the project, and more importantly at what cost to the corporations retail shareholders?
With almost 200 million shares outstanding trading at 20 cents, and what appears to be upwards of $90 million in liabilities, it will be interesting to see what they can come up with.
Crossing my fingers!