It's all part of the MCAP, 'Market Capital' and without MCAP, the company will find it hard to move forward which means they don't have access to 'draw down' funds from anywhere to be used for further investment. This is why they are in a pickle!
Shares on Free-float are available to all, but it still begs the question of how or where Millions of Dollars has managed to twist and turn it's way around the system to still end up with just a Website, $1.3M Dollars of Debt because I cannot see (because there's no updated Filings available), as to how the funds have disappeared?
If a company exists on any stock market and it sells no shares, the MCAP is ZERO (It doesn't happen), so this means the company has to ride along on additional funds held in the Bank Account, as they do anyway, but In the case of FLPC, there is 'no money' in the Bank, perhaps a few thousand Dollars but not hundreds of thousands of Dollars. This in turn means there's no collateral or any valuable assets to put up as security.
Any loan to further progress to the magnitude of becoming a producer, MUST be able to put up Security to the Lender. The BoD are unlikely to put their homes on the line for this! The amount of shares in issue values the company for what it's worth. If there.. (and there are)... Millions of share in issue at this very LOW Share price, the company is proved to be fairly 'valueless' and dead, metaphorically speaking. So it wouldn't encourage a lender to stump up vast sums of cash to a poor performing business. It stands to reason as it goes with it's track record and would put off any lender by back-tracking on it's performance to easily make the decision whether to lend or not. It's VERY High Risk and a very high chance of the lender losing the lot, that's if they were daft enough to splash out in the first place!
Logically, this is why we feel that it's virtually impossible for a little company to progress much further than explanation's about HOW they propose to go about Mining, where, who with and possibly when, but not actually doing so... the same old story. It's a question of cheap talk being sufficiently plausible to attract investment indirectly through selling shares, to help prove the company is being successful! It would assist in the lender....lending! Without selling very many, the shareholder will in theory, be in a minority group but has little say, which is why the board most probably hold the majority of shares overall. They can call the tune! That's how they want it because it gives them the whip hand!
