FormerXBC Inc XEBEQ

Everyone is waiting

[TradePro]

With a cash use of 1 mil per week, everyone is waiting until a financing is announced, or an asset disposals.

[Kipperly]

Would be appreciated if you can expand on this post.  You have likley crunched some numbers to come to this conclusion.  How much cash are they short for funding the build of future sales and ongoing operation of the company?  At a very basic level this is the formula -- Have cash to generate and execute on sales orders, from this make a profit that can be used to generate and build

[TradePro]

From their Q1 financials: As at March 31, 2022 the company had $34.7 million of cash and restricted cash compared to $51.1 million as at December 31, 2021 this is a cash use of 16.4 million in 3 months. 

[filoux004]

Wow! Thanks TradePro. Peace

[Gann999]

Cool story bro what was their cash use per month in q4? Oh right they made money about 800k a month.

[tamaracktop]

So by your math, and assuming no major capital expenditures, no increase in cash flow, and absolutely no cost reductions, between their cash and their unused lines of credit the company can sustain itself for well over a year without needing to do a financing. ....EXCELLENT!

[TradePro]

Unfortunately, I do not come to the same conclusion as you Tamaracktop.  Here is what the company said in their Q1/22 MD&A: In January 2022, the Company and National Bank of Canada’s Technology and Innovation Banking Group executed a Consent Agreement to amend the existing February 2021 Credit Agreement. The credit facilities are available until June 30, 2022, with a total value

[Gann999]

They have only drawn 5 million of that so can easily have access to another 40 million until this legacy is off the books.

[TradePro]

Of the 34.7 million in cash, 10.5 million is restricted. This leaves the company with 24.2 million in cash at the end of March 31st.  Without significant overhead cost reductions and/or a strong improvement in Gross margin the company will be out of cash by July/August.  Some sort of financing must be on its way, otherwise the company will be in serious trouble.  That is what

[filoux004]

Where were you one year ago excellent analysis, Thanks Peace enjoy the NBA

[tamaracktop]

This company has much deeper pockets than you think. It's as closely allied with the provincial government in Quebec as it could possibly be.

[filoux004]

Oh!! Fantastic, we now have to rely on govt handouts...Quote of the year.'You are committed, Congrats, now wait ' . Peace enjoy the NBA

[tamaracktop]

...This is the ace up its sleeve that the market's completely obvious to.

[tamaracktop]

I very much doubt it will come to that, but it's definitely there.

[filoux004]

May 12th at 1.16AM ' I've lost all credibility, I will keep my thoughts to myself going forward, good luck to all.'

[Kronyboy]

Very true, you have zero credibility. Thank you for reminding us of this irrefutable fact.   

[filoux004]

I will enjoy the NBA while I can't stop laughing.good luck Peace PS I was a quote from TT

[TradePro]

I have not read or seen any news release about the involvement of the Quebec government, but I hope it is true and you are right. Nonetheless, I do think that the market is nervous about what I have described. This might be part of an explanation for why the share price is behaving this way. 

[Kronyboy]

I repeat, IR has repeatedly stated since q1 call that there will be no financing at these levels. From Brandon earlier today (from email correspondence from one of our discord members): "Yes, I think the comment was taken a bit differently than what Stphane wanted to get across. We are exploring all options when it comes to funding ourselves and have other options which are likely more

[catchascatchcan]

You put a whole lot of faith in a guy named Brandon that makes $65K a year to work a phone hahaha.  Based on the quality of his pitch to you, he may get a Xebec mug this year as a Christmas bonus.  He can then drink his tears from it like TT.