GREY:DGCRF - Post by User
Comment by
RetailRubeon Jan 22, 2014 11:32pm
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Post# 22123551
RE:Q4: Little to report
RE:Q4: Little to reportDibah's summary left out one key statement from the earnings conference call. Freddie (as Dibah calls him) said cash burn in fiscal 2014 could be as high as $2.1 million. Hence our $4.2 million cash balance at 2013-Oct-31 will shrink to $2.1 million by 2014-Oct-31.
Now, we should probably soon set aside $1.3 million just in case we have to lay everyone off and pay them statutory severance according to Quebec labour law. That leaves $0.8 million to pay for everything else.
That means we can afford to pay $0.8m to HOLX to buy its prostate cancer diagnostic business. But we can't pay all of it to HOLX because we need some cash to finance inventory and trade receivables after we buy it.
Maybe HOLX will forget we owe them $5 million to redeem their preference shares. I just don't know how we are going to pay for this strategy.