RE:RE:More Water Rights BoughtAnd GRB's "Going concern statement" -
"As at June 30, 2022, the Company had an accumulated deficit of $24,227,743 (December 31, 2021 - $22,079,390) and a working capital deficiency of $4,631,371 (December 31, 2021 - $4,364,468). To date, the Company has no history of earning revenues. If the Company is unable to raise any additional funds to undertake planned development, it could have a material adverse effect on its financial condition and cause significant doubt about the Company's ability to continue as a going concern."
".....and most of the current liabilities is owed to Directors and Related Parties in the form of bonuses accrued and loans."
Review the fact that of the loans owed the majority have paid twice as much in interest (at rates of 10%-12%) as the original value of the loan.
$5,502,891 is due within the year.
Keep in the $6.5M invested in Montalva, along with $644,300 owed to PBJL, $1.95M bonus to the CEO plus additional bonuses to be paid to other executives and VOYA all needed to be accounted for in the financial bottom line of the project moving forward. This acconts for over $10M that needs to be added to the proposal submitted for the project.
That's a significant cost and other companies don't have the need to add this to their proposals.
Nine years of involvement comes at a cost.
As the agreement currently with PREPA is to complete the studies required. There is no guarantee upon completion of these studies that Montalva will receive a contract. Upon completion of the feasibility studies GRB needs to determine if the additional cost going forward can be absorbed into the KW/h pricing and the project is still feasible. There is currently one proponent in this process that is questioning whether or not they can move ahead. The other is trying to secure (4) PPOA's.
The project requirements have changed signifcantly over nine years. What was easy money previously is getting much tighter for a profittable project.
Again $10M needs to be internally accounted for in costs.
As for GRB and certain executives involvement in PWR -
"Subsequent to this transaction, the Company owned 19.99% of Captiva and with the fact that the Company and Captiva have common executives and directors, it was determined that the Company has significant influence post the shares for debt transaction and will account for the investment under the equity method."
I am here to try and determine what is stated, what is hidden in the background and what is fact based.
Jeff is a smart guy, smart ideas, interesting projects and has assembled good people to execute. As an investor you need to know what is happening in the background and between the lines in order to make a value judgement.