ACHILLES HEEL of EPL LARGEST SHAREHOLDER FINANCIALS - AVOIDEPL ACHILLES HEEL and MAJOR WEAKNESS, is their LARGEST SHAREHOLDER - FNR- 49 North's Financials.
2015 Annual Audit or FNR - AUDITORS COMMENTS - Letter Pages 2 - found on Sedar - questions and comments their concerns "CONSOLIDATED FINANCIAL STATEMENT which DESCRIBES CONDITIONS AND MATTERS THAT INDICATE THE EXISTENCE OF A MATERIAL UNCERTAINITY THAT CAST SIGNIFICANT DOUBT ABOUT FORTY NINE NORTH's ABILITY TO CONTINUE AS A GOING CONCERN" - Page 2 - Davidson&Co. Audit Letter and refers to Note 1 of the CFS - all found on SEDAR, that was filed last night.
Why is this a major weakness and deep concern, in the event 49 North has to raise CASH or if something happens to 49 North the administrator wouldsell off any and all assets at deep discounted prices. We saw this in 2007/8 - we saw this when Bre-X - occurred - when funds needed to raise funds/cash quickly and etc.
EPL MGMT should be worried/concerned about FNR's financial health.
In my humble opinion and based on Sedar filed reports/Credit MKTS, ILLIQUIDITY of many stocks in the resource sector and MKT conditions EPL is an Avoid or Sell, overitme after this dead cat bounce EPL will trade under 3 cents and perhaps go no bid with many other resource stocks.