Why was it 'expected'? I am not following on that one.
FYI- DC (that is Dean Cubley the CEO) said in the last shareholder CC that he anticipated the company becoming CFP in Q4... but at the same time, he tap danced about why his same prediction a year earlier didn't happen. I really want to believe that he learned his lesson the first time and wouldn't dare make a prediction like that unless he was absolutely sure it would happen... so I have been adding more to my over loaded boat full of ERFW shares.
The factors that keeps the PPS down this low is all about cash... will the company turn the corner and become CFP and how will it raise more capital to invest in new projects (more capital needed was mentioned in past CCs)... Dilution or no dilution... if there is dilution, how significant will it be? We are at 200M shares outstanding right now... DC has another 250M that he can authorize to raise money but being the largest shareholder, I think he is waiting until the PPS returns to a much higher number before he sells more shares... therein be the problem... like the chicken and the egg... can the share price jump a lot higher if the dilution is coming? Can the money be raised before the PPS goes higher without over diluting the shares? ERF needs an angel investor to step up with deep pockets, take a peak under the hood and commit to putting in X dollars for Y number of shares... but that average cost per share has to be something like 40 cents/share or higher. Then the PPS would jump, the dilution would be limited and we'd be off to the races.
Now with cheese on the horizon, maybe the company won't need any more dilution at all. If so, the PPS goes a whole lot higher.
Looking for the cheese to be served and try to figure out what kind of revenue stream it can generate. Based on CC facts, I figure the company needs to add about $7M in annual revenue to become CFP. Anything more than that is gravy.
A1
