Energold Drilling Corp EGDFF

RE:RE:RE:RE:RE:RE:RE:Why I Am Buying Today

[NineLives]

DRBrassbottom, you wrote
'The fact he kept his job speaks volumes about how serious this really is, seems like just another ploy to grab cheap shares for the nervous nellies.  We'll be at 15 before the end of the week.'

I'll hold you to that speculative wager.  I think the release said a lot more.
This part really important:

"

• Non-payment of interest due under the notes issued pursuant to the NPA;
• Failure to meet minimum working capital requirements.

 

In addition, Energold is in default with respect to the repayment of the residual principal balance owing on a March, 2018, working capital facility."

And yet they reported cash of over $4 million.  They obviously needed that to run the company and if so it means they are now cashless or close to.  Fred has not shown a profit for years so why do you think he can turn it around now.

"Where necessary, Energold expects to request amendments to certain forbearance terms to better align them with the realities of Energold's business and accounting systems."

Accounting jargon, which means we want a better deal than the one we originally signed.  I would expect management at some point to be replaced, in fact the relase hinted at that.  Also a massive PP will be in the works..JMHO.

"To contribute to these ends, company management and the board are running a process to identify and engage an experienced chief restructuring officer to guide the company through its present challenges. The company, with input from the agent, is considering a number of potential candidates. In addition, Energold intends to look for additional equity financing opportunities to contribute to the restoration of its financial and other debt covenants to good standing."