BEHL Mortgages Shares for Financing (Scenario)
In lieu of any other explanation from BEHL, I propose the following explanation for BEHL's financials and cash flow.
This is a scenario that suggests that perhaps BEHL is mortgaging the authorized shares of BEHL that they just authorized this past month.
This is not a fact nor is it negative. It merely is a way to finance a company without cash flow. But, it does suggest the risk here is greater than supposed. A typical Pinky Mortgaged to the hilt!
Let's say that there is a company that has no visible means of sustaining its day to day operations (pay roll and expenses) and yet has the ability to issues shares to the public (because it is a publicly traded company).
By authorizing the issuance of say 500,000,000 shares and at the time the company's share are trading for .003 per share, that would make the authorized value of those shares = to $1.5 million.
So, if one wanted to, they could find a friendly money person, entity, of institution to loan, the operative word is loan them money for those monthly expenses and pay roll on terms covering the companies monthly needs.
The company would most likely secure this loan by a 2 to one ratio of collateral. (meaning for each dollar value received, the company would pledge twice as many shares to their value. This is because, you see, they haven't been issued yet and the lender is taking the risk for, either default on the loan, the market collapse of the shares, etc.)
The company does not pledge all it's shares and sells some each month to pay the interest on this arrangement and keeps the loan current and the lender satisfied or for unforeseen expenditures.
Hence small dilution of the shares say 10-20 million bimonthly.
The company meanwhile ticks on (continues to operate) attempting to be successful to get Investor clients into their business. If these operations prove successful, then enough money is available to pay off the lender, release the collateralized shares and everything is Hunky Dorey.
I believe something of this sort is the BEHL scenario. The borrowings for the cash flow, as this scenario suggests, should be reflected in the Q2 financial report. However, there are certain liberties a public company has regarding these off the balance sheet deals.
This scenario coupled with my 1st scenario of Dennis Fisher's exit strategy and new CEO appointment, make sense to me.
This is a perfectly reasonable assumption. Keep in mind the company shares have been authorized for a 1/3 or 33% dilution. Why else would they do that? and without company disclosure or an explanation anything is possible.
Borrowing upon borrowing and deposits that are refundable, make this, definitely, a long shot here.
There is nothing wrong with BEHL doing this, but in lieu of their explanation of their financing, anything is possible.
I too will be looking forward to a full explanation of this issue from Dennis Fisher in his radio interview on Friday. If this is not explained successfully, then we know a scenario such as this is possibly the situation. Hey, maybe employees are working as independent contractors and on unemployment and taking shares as compensation or something or other.
In My Opinion
AI
