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CC Highlight Part 2:

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jyyoo   Thursday, 09/06/18 01:02:54 PM
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CC Highlight Part 2:

Both Solomon and Dan reiterated their confidence in the cash dividend coming from positive operational income and to be paid out in Q4 2018.

• "We do feel we will have positive cash flow in the mid to later part of the 4th quarter."

Garrett $6M Loan:

• "Yes, we will not be paying the $6M loan by issuing shares. We aim to repay the entire $6M Principal and Interest on or before July of 2019. That’s something that has been negotiated here recently. The funds will come from one of a couple sources. The first sources are stand-by letters of credit which we’ve been working on diligently for some time now and we now have positive feedback. In essence these loans would refinance the $6M loan so that the repayment requires no new issuance of shares. This approach is moving with our targeted time frame, expecting the first loan of $1M to materialize first then a second SBLC loan of $3M to close some time before year end and in term we are targeting the closing of a larger SBLC loan of $10M sometime during the first part of 2019. In this respect, after Solomon’s recent meetings with the SBLC providers and the lending banks the company is rather confident of funds being made available on approximately this schedule. This is the surest way that we are going to be able to secure funds to repay the prior $6M loan on schedule without relying on other newly initiated programs or organic cash flow improvement. However, we also know the best way to fund repayments will be from cash flows generated from the initiatives such as those at AF3 or the new Tri-way Trading operation or the HU plantation initiative etc. If these projects do generate sufficient incremental cash flows within the repayment schedule then the stand-by letter of credit funds would either not be drawn down or we would probably likely use them for another purpose that we’ve already started to initiate. It should be noted though that in addition to the $6M loan that we do have legacy obligations remaining and the processes I’ve just described in repaying the $6M loan will facilitate all debt repayment in a prioritized manner."

• "Please realize that managing cash flow in the short term while past obligations are wound down is foremost in management priorities. We are quite confident that the downturn created by conditions necessitating the closing of the abattoir among other factors created a short cash flow that is temporary and nearing an end, other than normal corporate circumstances like stock options."

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