Replies to post #3366 on Kallo Inc. (KALO)

[TorontoNewf]

I would not say Kallo is "covered with cash", but there is little doubt they have received some kind of advance from their $200m sale.

You normally do not lease any office space or hire people without cash (or at least some assurance of cold cash - banks do not easily provide startups with lines of credit).

The new offices and any new hires means they are burning between $200k and $250k per month in expenses, and this cash they simply did not have in the past. They likely got a 5-10% non refundable or cancellable fee to help establishing the infrastructure to service the contract.

Progress is slow, but this things simply don't happen without cash. The fact that there IS progress says there IS cash. If there wasn't, most of the staff would have abandoned ship, never mind move into better quarters.