20 million sale nets Sunniva about 8 USmillion going forwardYes,-was dead wrong on estimating net proceeds on sale of land which came in around 15.5 million.
Good for Sunniva
From these proceeds, they must pay off the bridge financing in two days of 5.5 million leaving 10 million. Then there is the promissory note of 2 million due yesterday, leaving about 8 million Canadian or say 6 million US going forward to fund future losses from operations, payables and commitments to buy equipment for the new glass palace.
Don't forget they have a commitment to pay 10.5 million in equipment per MD&A which must be paid for, and then installed before the building can be finished. Further , there was no cash to pay over 12 million in payables, that I assume are still outstanding ,so thats 22.5 million dollars in liabilities ,with 8 million US cash on hand to cover them. Plus, there has been a cash drain of around 2 million a month for last six months that I expect to continue.
Last, once the building is finished they will need to start paying over a 1 million a month in rent. That rent will continue for a few months while they test the equipment, , then the three or four months to grow the final product , then another two months to collect their receivables , all without cash flow. Thats probably 8 months of rent ( 8 million plus ) up front, with operation losses on top of that.
Yes,-its far more than I thought they would get for the land, but they are no where close to being out of the woods yet. They will still need a PP . It's just a question of when, and I think they bought themselves another month.