The breakup value of the company is published every quarter.
as of Sept 2018 ...
breakup value
= book value
= assets - liabilities
= $13.1M/174.8M shares
= 7.3c/sh
Any text credits would be lost in bankruptcy.
Any text credits would be preserved in a buyout.
The details get messy fast.
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In connection with the Credit Facility, the Company has granted security over substantially all of its assets in favour of Sprott ....
Does that prevent the company from selling assets to settle liabilites ?
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That said, every quarterly report has this text.
NATURE OF OPERATIONS AND GOING CONCERN
If the Company is unable to raise the necessary capital and generate sufficient cash flows to meet obligations as they come due, the Company may have to reduce or curtail its operations or obtain financing at unfavourable terms. Furthermore, failure to continue as a going concern would require the Company’s assets and liabilities be restated on a liquidation basis which would differ significantly from the going concern basis. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.
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