Niocorp Developments Ltd (NB)

[tedro84]

You don’t think it’s controversial that the company fraudulently applied for a government backed loan? Other companies are making headlines for this.

I doubt they went on a spending spree. Payroll, rent, and utilities is all they can use it for and since they filed it under Elk Creek Resources and not NioCorp they were only authorized to use the funds for direct ECRC expenses. I.e not the salaries of management except for Honan and not rent at HQ.

Point is that it was an incredibly brazen maneuver and the integrity of every single one of these public companies that took funds under the program should be deeply questioned. NioCorp’s a special example because they have zero financial impact from this virus. If anything the liquidity that the fed has injected into the economy would be a benefit to a company looking for financing that won’t produce a thing for 3-4 years in the best case scenario.

I’d also think investors would wonder why, if financing is so close and they have commercial terms agreed to, the company would apply for a government bailout of a measly $200k.