GREY:ETRFF - Post by User
Post by
House7575on Sep 08, 2011 1:48pm
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Post# 19023209
Re: Prediction
Re: PredictionFood for thought. If you look at the Co's liquidity and cash burn rate they could be out of cash by the endof the year. I personally suspect insiders and those that got into the $.50 financing arent buying because they Co is going to raise more cash at these depressed levels and they will sweeten the deal with warrants. The end result is there is going to be some major dilution to current shareholders if they dont particpate in the next round. The alternative is getting a term loan which will also result in dropping the shareprice as Enterprise Value is a function of Equity and Debt. As for value... sure its worth 40% of what they paid for them but it still isnt a deal until their liquidity issue is behinde them. In the end, I hope I am wrong.