RE:RE:RE:RE:RE:Insolvency Filings Incoming? rwfresh wrote: Well from what I can see they have about ~10s of millions in assets. The have a decent history of good revenue and have just overhauled multiple stores with renovations in the last couple of quarters. They have a relationship with Loblaws which is the largest food distributor in Canada. If they need money for continued growth I just don't see any problems with them getting it. And likely the price of the stock is a move to give some lender a nice entree point or an existing lender more stock for their money.
10s of million in assets? Excluding inventory, they have ~$1M in current assets. They need this solely to operate and, notwithstanding debt obligations, this would get them through less than a quarter. Other listed assets include goodwill (lol) and property and equipment. So unless you are suggesting that the company may have to liquidate two stores worth of P&E, I do no get your point.
Can you provide any supporting evidence that they have any significant relationship with Loblaws? I do not understand the relevance here anyways. Also, your suggestion that they will have no problem securing additional investors comes off as blindly optimistic. The volume of trading for the stock is almost non-existent which demonstrates minimal public interest. Moreover, no company is investing in a company that, after 16 years, has never turned a profit and has weak revenues, high debt, and horrible balance sheet overall.
rwfresh wrote: The debentures.. I'm not seeing what you are seeing. Can you direct me to a doc that outlines the details? Not sure why people think OG is going to have to cough up 3 million liquid cash today. Can be paid in stock no? Maybe you are talking about the potential of the lender dumping their stock? Anyway, I could be totally wrong so appreciate any info you've got.
The interest was payable in stock. The principal amount is convertible only at the disrection of the debenture holders. I highly doubt the holders are going to convert the remaining $3M principal into stock at $0.11 when the stock is currently trading for less than half of that amount. It is therefore likely that OG will have to pay the remaining balance in cash.