Value Microcaps Motherboard

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Bob, Yes I do know about the convertibles and special warrants on BRM. Note this is all in hands of big clean tech Venture Capital fund that paid 2-3 bucks for their 25% stake and obviously want an exit at a profit. When the co. ran in trouble they funded them with debt and have been extending maturities ever since.

http://www.businesswire.com/news/home/20060802005176/en/Expansion-Capital-Partners-Increases-Size-Clean-Technology#.VeMjFyXtlHx

http://www.theglobeandmail.com/report-on-business/the-key-to-survival-truly-patient-capital/article17981181/


http://www.expansioncapital.com/strategy.php

Expansion Capital's Investment Strategy
Invest in expansion stage companies: the Fund invests in growth stage companies, generally with revenues of $2-$30 million, that have a reasonable expectation of reaching $30M to $100 million in a three to five year time period.

Focus on Exits: the Fund’s focus on exits begins at the time a company is being considered for investment, and the Fund Managers must be able to see several clear and plausible exit paths – from buy-outs to sale scenarios – prior to making an investment. The Fund Managers draw upon a broad network of financial and strategic investors to help a portfolio company through the exit process.


The debt is not an overwhelming burden and large portion of it will be cleaned up by year end and some already has been. Profits are more then capable of covering all scheduled debt payments shown in last paragraph. Total debt is less then 1 yrs profits so they in good shape..

6. Long-term debt March December 2015 2014 $ $ 12.75 % debenture (maturity amount - $1,485,000) 1,485,000 1,655,000 8% convertible debenture Series 1 (maturity amount - $811,274) 803,079 768,827 8% convertible debenture Series 2 (maturity amount - $1,358,952) 1,161,267 1,109,363 3,449,346 3,533,190 Less: current portion (2,288,079) (2,423,827) Long-term debt 1,161,267 1,109,363

Biorem Inc. Notes to the consolidated interim financial statements March 31, 2015 and 2014 (unaudited) 11 6. Long-term debt (continued) On March 31, 2015, the Company signed an amendment to the 12.75% debenture agreement amending the repayment terms. Under the revised terms, $200,000 of principal was due on March 31, 2015 and $50,000 due on July 31, 2015, $200,000 on August 31, 2015, $50,000 on each of September, October and November 2015 and the balance on December 31, 2015.

http://www.stockwatch.com/News/Sedardoc.aspx?docid=3390034


I will go on a limb and say BRM gets sold within 12-18 months with the Venture Capital Fund converting the 7M warrants at 0.175 which would end up cleaning BRM´s balance sheet, giving them control of about 10M shares / over 20M total outstanding. At this point BRM could be sold for 30M or 1.50/ share making good on Expansion´s Capital investment and a 5 bagger for me. :)


OTOH I would be very wary of a company like LM capable of diluting its fully diluted share count (22 to 32) by 45%(!) back in April for a mere 500,000 bucks, Big red flag to me....