TSXV:KHRN.H - Post by User
Comment by
Benedictuson Nov 10, 2020 12:17am
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Post# 31868407
RE:RE:RE:Whoever requested a halt this morning should be fired
RE:RE:RE:Whoever requested a halt this morning should be fired The company just announced in their last corporate update that they had $14.7M at the end of Q3 but also showed that the cash burn bumped up from $4M in Q2 to $5.3M, which was not insignificant. Assuming a similarly high burn for Q4 and Q1 would have puts them out of cash by Q2 (about the time management had stated many times they'd expected to be cash neutral).
My guess is they're going to blame this surprise pp partly on Covid but I am starting to believe their strategy of asset lite entry into fiercely competitive markets is offering lower margins, operational challenges due to covid and less top line growth than they'd expected.
This pp if they get the over allotment and assuming full warrant conversion just bloated the sharecount by over 50% and it buys them slightly more than 2 quarters of cash to burn. I will tune into the webcast but unless they absolutely wow me with their plans for this capital I will be looking for an exit.