GREY:TSTIF - Post by User
Post by
screamer9on Apr 12, 2018 10:04am
166 Views
Post# 27872500
Financing
FinancingDon't think there's been an in-depth discussion on potential financing, but I'd love to hear the board's thoughts on it. If I've missed, the discussion, then I've missed it.
Full disclosure, I'm a long with an average cost base above $2 and with any holding, especially this one, I'm hoping there isn't a need for a share raise.
Of the 5 or 6 analyst reports that were shared (thank you for sharing them), only one of them (can't recall which one - NB?) had a cumulative negative EBITDA forecast in the next 18 months that would equal or exceed the company's current cash balance. The rest of the analysts forecast negative EBITDA of approximatley $9M - $10M on average. Compared to the company's cash balance, this would leave a cushion. My question is what are some things that can point to that one analyst being wrong?
The latest BOD member addition has great connections, as someone here mentioned, but he's also experienced in financing, hence this discussion. Ideally, any financing would come in the form of a loan or another instrument that would only have short to mid-term impact on equity value, as apposed to a share issuance.
Other than the selling pressure from the fund, how much of the decline in SP is attributable to concerns regarding future financing?
RR finally put his money where his mouth is and I doubt he'd knowingly do this if he wasn't somewhat confident with the company's financial health.