LEC is financially sound and has cash resources estimated to last until January 2011 considering their current situtation.
I strongly believe that the current developments and future successes of their HP-L Lignin sales along with any offtake agreements will most likely happen well prior to year-end and that LEC should not need to raise funds via public markets in the near future, or at least not at these prices when/if the time arises. atb
Lignol Provides Update on Financial Outlook
6/30/2011 8:30 AM - Canada NewsWire
VANCOUVER, Jun 30, 2011, 2011 (Canada NewsWire via COMTEX News Network) --
Financial resources extended from September 2011 to January 2012
Lignol Energy Corporation (TSXV: LEC), a leading technology company in the advanced biofuels and renewable chemicals sector reports that based on the Company's current financial position and contracted agreements, the Company has sufficient financial resources to fund its "Baseline Operations" as described below until January 2012.
The Company's MD&A for the quarter ended January 31, 2011, stated that the Company had total cash, cash equivalents and short-term investments of $2.3 million, a net working capital surplus of $3.4 million, and access to up to $5.3 million from contracted government and corporate contribution agreements resulting in potential resources available up to $8.7 million. Management reported that it felt those resources were sufficient to fund "Baseline Operations" until September 2011.
Management expects to report that as of April 30, 2011, the Company had total cash, cash equivalents and short-term investments of $3.6 million, a net working capital surplus of $3.2 million, and access to up to $4.0 million from contracted government and corporate contribution agreements resulting in potential resources available up to $7.2 million. In light of the conditions present as of April 30, 2011, together with the Company's cash, cash equivalents and short-term investments of $3.3 million at June 30, 2011, management now believes that there are sufficient resources to extend the funding of its "Baseline Operations" until January 2012.
"Baseline Operations" include the operation of Lignol's Biorefinery Technology Development Centre located in Burnaby, BC, which includes bioconversion and lignin laboratories and its integrated pilot-scale biorefinery, the Company's US operations and all corporate general and administration activities. Excluded from the "Baseline Operations" are the significant capital costs associated with the development and construction of a commercial demonstration plant.
A more complete description of Lignol's financial position will be provided in the upcoming filing of the Company's April 30, 2011 financial statements and MD&A, which are anticipated to be filed on SEDAR, and also available on the Company's website, within the next thirty days.