Replies to post #167592 on Value Microcaps Motherboard

[cartonet]

Bob, Yes I do know about the convertibles and special warrants on BRM. Note this is all in hands of big clean tech Venture Capital fund that paid 2-3 bucks for their 25% stake and obviously want an exit at a profit. When the co. ran in trouble they funded them with debt and have been extending maturities ever since.

http://www.businesswire.com/news/home/20060802005176/en/Expansion-Capital-Partners-Increases-Size-Clean-Technology#.VeMjFyXtlHx

http://www.theglobeandmail.com/report-on-business/the-key-to-survival-truly-patient-capital/article17981181/


http://www.expansioncapital.com/strategy.php

Expansion Capital's Investment Strategy
Invest in expansion stage companies: the Fund invests in growth stage companies, generally with revenues of $2-$30 million, that have a reasonable expectation of reaching $30M to $100 million in a three to five year time period.

Focus on Exits: the Fund’s focus on exits begins at the time a company is being considered for investment, and the Fund Managers must be able to see several clear and plausible exit paths – from buy-outs to sale scenarios – prior to making an investment. The Fund Managers draw upon a broad network of financial and strategic investors to help a portfolio company through the exit process.


The debt is not an overwhelming burden and large portion of it will be cleaned up by year end and some already has been. Profits are more then capable of covering all scheduled debt payments shown in last paragraph. Total debt is less then 1 yrs profits so they in good shape..

6. Long-term debt March December 2015 2014 $ $ 12.75 % debenture (maturity amount - $1,485,000) 1,485,000 1,655,000 8% convertible debenture Series 1 (maturity amount - $811,274) 803,079 768,827 8% convertible debenture Series 2 (maturity amount - $1,358,952) 1,161,267 1,109,363 3,449,346 3,533,190 Less: current portion (2,288,079) (2,423,827) Long-term debt 1,161,267 1,109,363

Biorem Inc. Notes to the consolidated interim financial statements March 31, 2015 and 2014 (unaudited) 11 6. Long-term debt (continued) On March 31, 2015, the Company signed an amendment to the 12.75% debenture agreement amending the repayment terms. Under the revised terms, $200,000 of principal was due on March 31, 2015 and $50,000 due on July 31, 2015, $200,000 on August 31, 2015, $50,000 on each of September, October and November 2015 and the balance on December 31, 2015.

http://www.stockwatch.com/News/Sedardoc.aspx?docid=3390034


I will go on a limb and say BRM gets sold within 12-18 months with the Venture Capital Fund converting the 7M warrants at 0.175 which would end up cleaning BRM´s balance sheet, giving them control of about 10M shares / over 20M total outstanding. At this point BRM could be sold for 30M or 1.50/ share making good on Expansion´s Capital investment and a 5 bagger for me. :)


OTOH I would be very wary of a company like LM capable of diluting its fully diluted share count (22 to 32) by 45%(!) back in April for a mere 500,000 bucks, Big red flag to me....

[cartonet]

Bobwins, take a good look at STT.V, I didnt see it mentioned around here so far and I believe you will like it, reminds me of loading up BRM sub 30c a few months back....

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117621893

[cartonet]

Biorem earns $318,000 in Q3


2015-11-05 10:20 ET - News Release


Mr. Derek Webb reports

BIOREM REPORTS $318,000 NET EARNINGS FOR THE THIRD QUARTER AND $17.6 MILLION BACKLOG

Biorem Inc. has provided its results for the three- and nine-month periods ended Sept. 30, 2015. Biorem's complete third quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

FINANCIAL HIGHLIGHTS:in '000's except earnings per share
Three-months ended Nine-months ended
Sept 30 Sept 30
2015 2014 2015 2014

Revenue 4,171 2,282 13,568 6,715
Gross profit 1,508 521 4,695 906
Operating expenses 1,084 705 2,735 2,186
Ebitda* 468 (99) 2,075 (1,008)
Net earnings (loss) 318 (287) 1,564 (1,653)
EPS - basic 0.02 (0.02) 0.12 (0.13)
EPS - fully diluted 0.01 (0.02) 0.05 (0.13)
* Earnings before interest, taxes and amortizaton, a non IFRS financial measure

Biorem's revenue for the third quarter was $4.2 million, an 83% increase over the $2.3 million in revenue recorded in the third quarter of 2014 and consistent with the $4.7 million recorded in the second quarter of 2015. Year to date revenue totaled $13.6 million, a $6.9 million or a 102 % increase in revenue over the first nine months of 2014. The revenue increase came from Canada, China and other international markets in which Biorem operates.

Gross profit for the quarter was $1.5 million or 36% of revenue compared to $521,000 of gross profit recorded during the third quarter of 2014 and $4.7 million of gross profit or 35% of revenue in the second quarter of 2015. Total operating expenses (net of other income) for the quarter were $1,084,000. Ebitda for the quarter was $468,000 compared to an ebitda of $(92,000) in the third quarter of 2014.

Net earnings for the quarter was $318,000, which represents $0.02 per share basic and $0.01 on a fully diluted basis, compared to a net loss of $1,653,000 or $(0.13) per share on a basic and fully diluted basis in the third quarter of 2014.

"We are very pleased to have had a solid quarter in terms of bookings and profitability," said Derek S. Webb, President and CEO. "The backlog has increased to $17.6 million which sets the foundation for future growth. Biorem continues to invest in new product and biological market development to further diversify our advanced solutions for air emissions abatement. These new ideas and products are expected to begin to contribute to our growth in 2016."

Unrestricted cash on hand at the end of the quarter was $ 1.7 million. Operating activities provided $547,000 of cash and changes in non-cash working capital used $676,000 of cash, $343,000 of cash was used to pay interest and debt principal during the quarter.

In March of 2015 the Company negotiated an amendment to its 12.75% debenture agreement amending the repayment terms and extending the maturity date to December 31, 2015. Under the amended payment terms, principal payments totaling $500,000 have been paid during the year to September 30, 2015.

Bookings during the quarter were $7.0 million resulting in an order backlog of $17.6 million on September 30, 2015.