Some thoughts from the 10-Q
They have 0.6M$ unrestricted funds as of today.
2.4M in escrow to be used towards funding the continued DFS.
They estimate the 0.6M is enough to cover them through mid-late September. This combined with the escrow funds will allow them to meet the required development milestone by November 1st.
They owe a 1.2M tax gross-up payment to Karlsson by September 10th.
Now, they won't default them over this, surely. So what we will probably be seeing is another debt restructuring.
My thoughts are this:
August 30th is the next known big date. The shareholders vote. At this point, it is almost certain that they will vote-through the R/S. The question at this point is: will that be a good thing?
The stock seems to be slowing down in terms of volume, even watching the boards you can see that people are just getting impatient, and tired of the current state of the company. The overall trend is a downward one. Now, could an r/s help revitalize the public interest in this company, thus potentially generating newcomers and overall a trend-reversal? I think it's possible, but I am no expert.
Something to also take into consideration is the current state of the potash industry. We're still in a wait-and-see phase as to how it will actually play out in the coming months. I feel investors, such as BHP & Sichuan are waiting for this as well. Once they see something a little more stable in terms of a pricing scheme, they may feel more comfortable to come aboard as a financier.
My personal take is this: The next 2 weeks to a month are going to be the best buying opportunities for not only this stock, but also passport as well. A buyout of the entire region wouldn't be out of the picture when the industry starts to settle down. The low price structures of these companies is something that is becoming more and more important with each development of the industry. At 115$/tn cost, it will always produce a profit.
This is, of course considering people have the patience, and guts to put money into a company, and industry that is at its' peak of uncertainty. The risk is definitely here, as is the potential reward.
