CSE:AFI - Post Discussion
Post by
Youwakeup on Jan 31, 2024 6:45am
Risky Investment
| Affinor Growers |
| AFI |
| | | |  | | | | New major risk - Negative shareholders equity | | The company has negative equity. This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks - Shares are highly illiquid.
- Negative equity (-CA$205k).
- Revenue is less than US$1m.
- Market cap is less than US$10m (CA$2.21m market cap, or US$1.65m).
Minor Risk - Shareholders have been diluted in the past year (6.3% increase in shares outstanding).
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