If indeed they have raised $200,000 via convertibles this means that within 6 months that amount can be converted and hit the market. My first question is if indeed they raised $200,000 since November, wouldnt some of this have gone to meeting permit conditions, and wouldnt company have released an update on progress ?
Second, if they raised this amount it would have not increased the shares outstanding,so increased outstanding shares would reflect conversions of prior convertible notes plus shares issued for services. ( since no amounts issued for private placements have been reported).
I agree this is all guesswork until they file an 8k explaining situation of the next 10q. But I still stick to an estimate ( perhaps now on low end) of 200 to 250 million outstanding shares this year.
CFO is a bit stuck in my opinion- no conventional financing via bank loans or private placements seem likely of any signficiant amount, convertible financing will just keep increasing public float steadily. With IR strategy of silence, hard to see where increased demand will come from in the short term.
Guess everyone betting (hoping?)that (a) they will get permit with conditions removed in time for a September start date (b) that there is mill feed that can be processed immediately (c) that new convertible will provide sufficient capital (d) that an IR campaign then would start to absorb the continually increasing amout of shares outstanding until profitability reached. Is this the scenario you are forecasting ? Do you believe they will re-open on schedule ?Someone stil lbuying so there must be believers still in this stock.
Sure is interesting time for this stock.
AI
