Post by
shiftyone on Oct 02, 2024 6:13pm
My guess
Based on the circumstances. They will have to sign some sort of a deal shortly.
Sept. 30 quarter end will be released in about a month. I question what there cash position will be. I wonder if they will have maintained the required $2 million cash balance which is a requirement of the credit facility. Perhaps they sold their MAE shares and that will keep them above the mininum.
The news article from last week, it mentioned Kevin wouldn't give details, but I think said something like they might have something in the works that will improve the balance sheet. The article did not say anything about increasing shareholder value.
I think that they are in a really tough negotiating spot now with the time constraints they have. They might be able to make a deal to improve their balance.
With the much higher price of gold. Some entity may take a second look at SGNL.
To improve the balance sheet, it will likely require paying off the debt facility.
I think they will get about $35 million, which will allow them to pay the debt and have 10 million in cash. Perhaps to contribute to another drilling program which a poster suggested that they might have heard would begin in the New Year. If so, SGNL would be able to pay their portion out of the 10 million.
What will they have to give up for this? Probably 50%.
And they will be responsible to pay their share going forward. Including to anti up for the down payment required to borrow the rest of the funds for mine development going forward. If they can't do that, any partner could take control for a low price at that time.
What would that do to current shareholders and price? Anyone's guess. It may contribute to another year of management compensations. Probably some changes to BOD.
But they are in a real corner now and time is not on their side.
This is only if someone is interested.
Wish you all luck... and this is all just my speculation.
Comment by
shiftyone on Oct 02, 2024 6:20pm
PS. if someone were to give them $35 million for 50%, that would value the company at $70 million. Signals half should be worth $35 million then? And there could be a good pop in price on that news and a new partner. That would put it to .12-.13 without a pop. And the traders will come back. Lots of volume lately. Buyers and sellers.