Chalice Brands Ltd CHALF

Debt Maturity in 10 months spells a disaster

[darkvving]

Chalice debt in 2022 spells a real problem especially the obvious is Chalice can't easily pay it off, either by raising capital, dilutions, more borrowing since it cannot use its own cash flow which has been negative in many quarters now Ultimately, if this company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. We often do see indebted similar companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. November is 10 months away and debt matures with the only option of a hostile takeover and maybe even going private & that guarantees loss of 100% of your investment