RE:RE:Why the misstatements from AnitaGet and Hevin ?Sir, do you own any shares of Avante?
Windsor1 wrote: I agree Avante needs to be sold. It's on the market so we'll see what happens. Generally they have a structural problem, in the simplest turns they do not have enough gross margin to carry operating costs and financing costs. They would need about $5 million increase in sales with their gross margin of 20% for $1 million and then only increased expenses by maybe $250,000. Until we see that I think this company is doomed to go under. Alternatively they could reduce their current spend to make their current revenue work but I find it hard to believe the management team has not already thought of this and concluded it is not doable. It was a good try but Intelligarde and ASAP had poor quality work, contracts that are hard to make money on and now I Avante Logix has the very significant additional problem of debt service. They were very skilled in raising capital and told a very good story but underpinning it are bad quality accounts and their financial problem of having to service a large amount of debt. The good news is that their current assets exceed their current liabilities by $10 million and the loss on the derivative liability will come back in with the share price below $1.56. In truth they needed public markets to raise the money to make the company but like the company 360Secure they are heavily burdened by the reporting requirements on public companies. To any investor who thinks the security space is a good place to be I would recommend to you Allied Universal, Warburg Pincus and the Caissie de Placemants have finished their role-up - now 720,000 employees and $14busd - and are going public in 2022. Avante is I'm afraid broken.