Refreshing transparancy It is good to see an NR update that actually tells us what really transpired rather than having it hidden in in the financials. There a lot of possibilities but not enough for shareholders to be excited about.
My biggest concern remains the cash burn problem, which is about $34,000 a month in expenses and only about $12,000 cash in the bank. If they don't have enough cash, they'll be forced to idle the operation which is not great at this time of year, as the probability of the inventory of unsold seedlings could die. This would mean additional asset write offs and put the company backwards (if they can still operate) for next year. I cannot see how they can possibly do a PP at these levels with the share price now 1.5 cents. Also, who would give them money for a convertible debenture when they have such volatile revenue and my guess in that the reason why they haven't accessed any loan money, is that those entities may be worried about becoming involved with such an investment.
From the MD&A:
"At present, the Company’s ability to continue as a going concern is dependent upon its ability to sell tree
seedlings and to obtain financing to cover operational costs and for expansion until such time as cash flows from its operations are sufficient to fund general costs and growth internally. If financing is sought by the Company it is most likely that it would occur by way of private placement for its common stock, however if market interest does not exist for such securities then the Company may obtain financing through other forms of security such as convertible debentures, or it may also seek to obtain debt from financial institution(s), which would be secured by the Company’s Chinese assets."