RE:RE:RE:RE:RE:RE:Insolvency Filings Incoming? > Can you provide any supporting evidence that they have any significant relationship with Loblaws?
No I can't, I thought there was something announced. Relevance would be avenue for cash.
> no problem securing additional investors comes off as blindly optimistic
I don't think so. The company has healthy revenue. They just re-opened another store this past quarter after overhaul reno. Which means more revenue, +million. Look at revenue in previous quarters when the last two renovated stores were operating. All that revenue is coming back. Nice inflation bump as well.
> 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
Profit? They are pursuing growth like most publicaly traded companies. For sure, would be nice if they were profitable but given their assets and their revenue, it shouldn't be a problem. But they are unlikely to switch focus to profitability right now. Any profit would be pumped back into growth. What matters is revenue. Revenue was down last two quarters due to renovations in existing stores. Which are completed and will push revenue much higher in the current quarter.
> The volume of trading for the stock is almost non-existent which demonstrates minimal public interest.
Also suggests that the only people that are selling are speculators who can't hold. Price is down on low volume. Are principals selling stock? I don't think so.
> 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.
Agreed, but at 9% interest there is no real reason for them to demand payment of the loan. They can just sit and collect interest.