Robbing Peter to Pay Paul? VPT appears to be managing liquidity challenges by issuing shares to satisfy obligations Of the debenture interest.
While this is good to help conserve cash, it raises concerns about financial stability, as they had negative working capital(1149698 in June) as I understand it and can’t close the financing . They had about 300k left in June and sales remain minimal so the rubber does hit the road at some point.
Not sure what this means for investor confidence but suggest to me paying Peter to pay a Paul so to speak
“Ventripoint Diagnostics Ltd. (“Ventripoint” or the “Corporation”), (TSXV:VPT) announces it will satisfy debenture interest payment obligation with the issuance of common shares, subject to TSX Venture Exchange (“TSXV”) approval. The Corporation will issue an aggregate of up to 83,864 common shares (“Shares”) for the payment of an aggregate of $9,225.20 of interest on certain outstanding Convertible Debentures issued by the Corporation on June 28, 2024. The Convertible Debentures bear interest at the rate of 10% per annum, payable every 6 months. The Shares will be issued at a deemed price of $0.11, subject to the approval of TSXV and are subject to a hold period of 4 months and one day. The issuance of the Shares will not create a control person of the Corporation.” Source :VPT news release
2025-01-10 | Ventripoint Issues Shares for Payment of Debenture Interest | TSXV:VPT | Press Release
All imo
FWIW
Do you own dd
For education and interest only not to invest