RE:GSP...only thing that matterssw248, as anticipated the corporation has been drawing on the $5 million HELM Credit Facility (loan) to pay the bills, and the crediit facility is now more than 50% drawn down.
Add that to the current liabilities of $6.6 million, not including the Helm draw, and it is really important that Financing is secured sooner than later as $11 million in the hole going into any negotiations does not exactly exude a position of strength at the bargaining table.
Quarterly press releases accompanying disclosure are often fluffy and forward looking, but the Financials and MD&A are what really matters, and should always be read by everyshareholder as a true guage of any corporations bottom line.
Also, I found this statement interesting: "The agreement to enter a transaction to acquire Innovare Technologies, as previously disclosed, was conditional on completing full project financing by August 31, 2022. Since that financing has not yet been completed, the agreement to acquire Innovare Technologies has formally expired. However, all parties remain interested and ready to proceed with the transaction once project financing is complete. Gensource will provide disclosure on this matter following the completion of financing for Tugaske."
A few take aways as per the corporations disclosure:
At September 30, 2022, the Company had cash of $209,536 (December 31, 2021 - $1,712,079), a decrease of $1,502,543.
Cash generated by financing activities during the nine months ended September 30, 2022 totaled $2,427,977, due to cash proceeds from Helm Credit facility of $2,000,000, cash proceeds from promissory note of $250,000, proceeds from the exercise of options of $536,910
“The Helm credit facility bear interest at a rate of 2.5% per annum, payable in arrears on the maturity date, which will be August 31, 2024. For the year ended December 31, 2021, KClean Potash received a $1,000,000 draw against the unsecured $5,000,000 HELM credit facility and for the nine months ended September 30, 2022 KClean Potash received an additional $2,000,000.”
Liabilities
At September 30, 2022, current liabilities were $6,654,612 (December 31, 2021 - $318,771). The variation is primarily due to an increase in amounts payable to vendors due to timing. At September 30, 2022, non-current liabilities were $3,102,357 (December 31, 2021 - $3,037,116) for the lease liability, convertible debentures and Helm credit facility. The Company will continue to attempt to secure additional financing to facilitate the execution of its business plan.