RE:RE:RE:RE:Debt
happyInvestor1 wrote: assets 417,460,000 - liabilities 247,000,000 = 170,000,000 in green.
Yes, we need to get more revenue but were not near bankruptcy.
https://auxly.com/wp-content/themes/auxly2018/media/2022Q1/FS_Q1-2022.pdf
Auxly is not about to fold but they do have their work cut out for them.
Auxly does have a debt ratio in excess of 45% of assets. That is high, so 'settoretire' has a point. This is commonly considered unsustainable but what offsets this is an interest rate of only 4% on the lions share of that debt. This helps to balance the scale compared to others in the industry who are paying in excess of 10% interest in many cases.
Auxly also just payed down another C$1.5mil against their highest rate debentures on July 15, 2022. As brutal as some see the terms to renegotiate that financing it did push the maturity date out 2 years to 2024. Time has value too.
Auxly now has a year and a half before they need to revisit the Leamington/Sunens credit facility. In the mean time the packaging line for Kolab Project finally comes on line in Q3-2022 and in the upcoming Q2-2022 we will see the production potential of Leamington to improve gross margins.
With two more production lines on order Auxly shows no intentions of slowing down by further ramping up to increase output to meet demand. Let's just hope these new lines don't see a 9 month delay on delivery and installation.
I'm not sure why Hugo has granted Mike so much grace on getting the production side into full swing but it's high time we started to see AUXLY's full potential. Hugo still insists on the goal of #1 in Canada 2025 despite the taunting layed down by Beena and others.
I was hoping to see Auxly break through the C$30mil NET Revs barrier in Q2 but my math says C$24.5mill is more likely with EBITDA at about (C$3mil).
Unless I've missed something.
I could be wrong...
Anyone else wanna toss out a prediction?
cheers