If I recall well, Allana was renting a private plane from Ethiopian potash for some time 2010 to 2012 period.
Does this sound familiar?
Ethiopian Potash on the brink of collapse
Republish Reprint
Peter Koven | April 3, 2012 9:45 AM ET
More from Peter Koven | @peterkoven
David Stobbe/Reuters files
Twitter Google+ LinkedIn Email Typo? More
The recent newsflow out of Ethiopian Potash Corp. is simply bewildering (see here and here for examples). It has been clear to investors that the company is in a chaotic state.
Apparently, it is in dire financial straits as well. Mackie Research Capital analyst Jaret Anderson noted that Ethiopian’s cash position was down to $588,888 as of March 23, compared to $1.69-million at the end of December. The company burned about $2.4-million of cash in its latest fiscal quarter, according to the financial statements.
“Should [Ethiopian Potash] not alter its current level of exploration and corporate spending, the company could find itself unable to meet its financial obligations,” Mr. Anderson wrote in a note. “A liquidity event is a very real possibility and could result in equity shareholders having their investment in the company wiped out.”
Ethiopian received a $600,000 loan at the end of February, and said it is in talks for a private placement with an unnamed strategic investor. If a deal is executed, Mr. Anderson wrote that it could be a big positive catalyst for shareholders.
But for now, he maintained a sell rating on the stock and cut his price target to 20¢ a share (down from 25¢) because of the company’s deteriorating cash balance.
“We continue to see large amounts of financing and project risk associated with [Ethiopian Potash’s] Danakil project and recommend investors switch into other names in the greenfield potash space offer lower-risk projects,” he wrote.
AI
