GREY:DULMF - Post by User
Post by
yoda2on Mar 13, 2014 10:32am
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Post# 22317841
Financing--not enough $ --too late--desperate dilution?
Financing--not enough $ --too late--desperate dilution?News seems to confirm the worst fears of the financial condition of DM and of its management.
DM said it was looking for $10 million but it was only able to attract $8.6 million and for that small amount they sold/gave away 10% of the company.
A previous post of mine estimated that $30 million would be needed to get through 2014. If that rough estimate is true, then we should expect some further financing effort by DM in the near term. So, the financial crisis appears to be not resolved but only pushed forward for a short period(maybe 5 to 6 months).
Do they need new management? Would this be a good time to clean house at the top and put in new blood with more financial smarts?
A very huge amount of shareholder value has been wiped out by this questionable unfortunate situation that would appear to have been avoidable with sharper financial planning.