AWRCF Conference Call
Where was everybody? Only 7 of us were on it.
Some info:
Stated focus on governance.
Previous CFO suspended. Fraud investigation ongoing. Legal action pending.
Previous COO suspended. Investigation ongoing there, too.
Seeking Nasdaq or Amex listing. Visited Amex this AM. If I heard right, said goal is to have listing application in process before 9/30 with listing 60-90 days after application is filed.
Want to raise capital with equity offering.
Half the callers on the call expressed concern about issuing equity when stock is trading at half of book. I asked if there was a minimum price below which equity wouldn't be issued and they dodged the question, as expected, stating the obvious in that pricing would depend on business conditions at the time.
They did try to assure us that they wouldn't disregard minority shareholders with excessive dilution.
One caller complained loud and long that 2 independent directors were released and 2 less-independent directors replaced them. The CFO argued that the other directors weren't accessible and needed to go so that governance requirements like audit commitee meetings could take place.
More A/R writeoffs coming but not a large number.
Said they would release quarterly financials going forward.
Expecting about $300MM revenue for year. Said Q4 data will be out in 30-60 days.
