That's a good question to have asked. Answer was the obvious, either as a 'required' answer and/or with some legitimacy of concern and afforts to protect all Commons.
You got me thinking back again. How come no sufficent slush of funds arranged for Recapitalization? Gramercy and Baiyin thus appear as opportunitists, squeezing the supplier, slow leaching, backing Banro into a hard place. And in thinking again, brings up my previous mantra that Banro mngt just planned to kick the can as far down the road as possible. Financiers did not supply them much room. Yet, nor did Banro mngt demand it!
Gold price did not come to the rescue. Banro great at kicking can down the road. This is their skill. It's getting/gotten to appear beyond skill but as purposeful low gear operations.
And then mngt had to buy more equipment? as per Taylor, as one reason for expenses and depleted funds? Further, mngt actually developed increased financing expenses when it planned and set itself up after Recapitalization for lower financing expenses? Huh? Well, that's two of the three reasons from Rory Taylor as for where the spending went. Number three, political. They didn't financially plan for contingencies? Did Banro pay a big ransom... which would show-up reported on the Q3 earnings report? Not adding up, and so either Rory does not really know, and was explaining as explained to him per his limited direct Banro experience, his new-to-the-crew Banro experience, yet likely, he at minimum has a greater understanding of things regarding Banro's internal machinations, in at minimum intuitively, and that in communication had need to marshal protective diplomacy; afterall, a shareholder just showed up 'randomly' after leaving many messages, to inquire about things.
But where was the Banro Board, and CEO, and all CFOs, to set-up a strong Recapitalization?
Thinking forward into 2018, things do not look good for Banro. It is out of cash. Mngt just exercised option to delay interest payment. I don't know particulars, how many times can Banro delay such interest payments? Yet think ahead to Q1, and Q2, 2018, not to mention where is 2017 Q3 earnings report and guidance?, and Q4, we can also expect to not be published in particular with Namoya shut down for the entire Quarter. But come 2018, with no cash, Banro has to cough-up double its previous gold deliveries to make up for 2017 H2 gold delivery deferrals. And, mngt will have to renegotiate the Namoya deliveries and catch-up deliveries, as Namoya is shut down and not producing (or is it somewhat?... or even a lot?… secretly). And mngt will have to continue paying financing costs. And mngt will continue paying themselves decent high salaries. For what? Something else?
It has occured to me that purposeful low gear operations may be a mngt tactic to minimize out-going gold deliveries to Baiyin and Gramercy, yet then it's still mngt playing kick the can down the road game, which indeed takes some skill, yet in fact, tremendously, lacks inspired skill, optimistic skill, realistic skill, and resolution.
So, BK seems obvious! At minimum as a consideration. Afterall, a Special Commitee has been established to figure out what the hell to do to raise capital and to continue mining operations, production, and even exploration. Let's assume Rory Taylor was straight-up with you about BanKruptcy not of consideration, this then means even more debt for Banro, more financing via share dilution ((BINGO!), or a sale of property or properties or consessions. Might they actually sell something this time? Or even the whole company?
Maybe the Recapitalization ain't done yet!
The Reverse after the Recapitalization was a given. Down to 110 Miilion shares... a healthy solid share count... and very ripe thereafter for a subsequent 2:1 split, or a 3:1 split. This likely an original Banro mngt 'back-up' or continued-Recapitalization plan. Who ir what will pay what for 220 Million additional shares of Banro? What's it worth as 'equivalent' Common share or (back to) Preferred Share swap, if not also dividend paying bonds awhich used to exist under the old Banro? $60M to $80 Million in cash. $120 Million. Going once… going twice... Are people loading-up now with BAA super deflated and super cheap? Record volume relative to pre-Reverse pre-dilution volume defines and thus redefines a new Banro. Is "new" an undeserving characterization? And with cash in hand, is Banro mngt stupid enough to spend the hell out of it? Or, should this play out, have Banro mngt timed their well-planned game perfectly to align with Gold's 'guaranteed' sharp rise?
Maybe too, something else is occuring quite differently than provided appearance.
