FEN: Going Concern, Cedit Facility matures in Q4 2016Guys, FEN has a Going Concern and can't pay its debt to the Bank and doesn't have any liquidity. The maturity is in Q4 2016:
At September 30, 2016, the Company had a working capital deficit of $7.0 million, including amounts drawn on its credit facility of $6.5 million. The Company currently has a credit facility with a Canadian financial institution of $7.0 million, which is repayable on demand and subject to during Q4 2016. Also, the Company has had net losses from continuing operations for the last eight quarters and has an accumulated deficit of $23.2 million.
I think FEN will file for bankruptcy due to liquidity problems. It will be irrational if POG is a white knight and saves FEN. If POG is interested in FEN's assets, it can buy out of the bankruptcy court and buy them much cheaper. There is no reason to pay FEN's market cap now because FEN will go broke soon, in my opinion.
Have you seen Point Loma Resources (PLX)?
PLX is a new producer in Alberta with high insider ownership and ZERO Bank debt. Very undervalued with production at 800+ boepd.