Artaflex Inc V.ATF

$500k financing

[elinvestor]

This short term financing was probably spent before the ink was dry. They need to pay suppliers and meet payroll. Eventhough they refinanced their operating line, it is an asset based facility, so that means tapping into this facility requires sales. If there are little or no sales, you can't borrow. This means sales are soft and with their fixed costs, Q3 and Q4 is not very promising.  I don't see any results of their cost-cutting measures. Wait, do they know how to do this?

The Israelis must be tired of bailing out this company.  They have only themselves to blame for keeping a management team that has a history of failures.

[springwind88]

I am guessing that the $500K was meant to tide them over until they have managed to find a strategic alternative. What are the chances that they could be bought out at this point?

[elinvestor]

I think they are fighting a losing battle. Unless an investor is flushed with cash, its going to be tough. What is Adeptron's competitive advantage, maybe they have some customers that might be attractive, other than that their margins are thin and in contract manufacturing its a tough going these days. The first thing new investors will do is clean house, but would you spend $750k just to get

[elinvestor]

I think they are fighting a losing battle. Unless an investor is flushed with cash, its going to be tough. What is Adeptron's competitive advantage, maybe they have some customers that might be attractive, other than that their margins are thin and in contract manufacturing its a tough going these days. The first thing new investors will do is clean house, but would you spend $750k just to get