GREY:ELCGF - Post by User
Comment by
jmowenon Mar 16, 2014 11:34pm
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Post# 22330162
RE:17,000,000 Accumulative deficit
RE:17,000,000 Accumulative deficitThe 17,000,000 deficit is a bookkeeping entry regarding shareholder equity. It is accumulated losses through the years that would include monies spent on exploration properties. If you look other junior exploration companies, most have these huge "deficits" and zero income, as they are spending money on exploration but do not have a mine as yet. The 17,000,000 is not money owed.
That said, Electra Gold is still living on the edge with some debt. As I see it, it has survived for many years,due to largese of certain employees and contractors that have accepted shares in lieu of cash for services rendered.
Shares have been issued to pay some of these obligations in the past, and will probably be issued in the future.Shares have also been issued or promised for payments and/or options on exploration properties.The news release you copied mentions that management plans to issue new shares to bolster their financials.
There was a vote taken( several months ago) and passed to allow the company to reverse split the shares 1 for 10. They haven't pulled the trigger on this consolidation yet.
JM