Post by
Here4thekeks on Oct 18, 2022 1:48am
Re: Debt Maturity is in less than 1 month (November 2022)
Chalice debt spells a real problem for investors and shareholders especially with the obvious fact that is Chalice has neither any financials (for a whole year) and looking at the September 30, 2021 (only available audited financials), it is obvious can't easily pay it off and might be in default.
The only ways to survive would be by raising capital, by dilutions and more borrowing since it cannot use its own net cash flow which has been negative in many quarters now according to the only audited financials available (Sept 30, 2021) and the fact that DE ratio sits at 68 meaning for every $1 they own, they owe $68 in debt.
Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing if debt holders take-over the company & go private. Many have often seen indebted similar companies permanently diluting shareholders because lenders force them to raise capital at a distressed price.
November is 13 days away but it is 30 days long and that is when the debt matures. We all feel bad for wasting nearly 90% of our investment that has become worthless with the failure to provide any financials for over a year and the stock price lingering at -98% to -90% since the reverse split. Time will tell and other views are welcome