Replies to post #131 on Dakota Plains Holdings Inc. (fka DAKPQ)

[legalizeMJ]

DAKP Q1 report:BAD news, Going concern

http://ih.advfn.com/p.php?pid=nmona&article=71384870

Liquidity

As of March 31, 2016, the Company had cash and cash equivalents and trade receivables of approximately $8.4 million and accounts payable and accrued expenses of approximately $9.6 million. In addition, it had $25.9 million aggregate principal amount of promissory notes due within the next twelve months.



The Company is focused on increasing the throughput and reducing the expenses at the transloading facility, but the decline in crude oil prices and contraction of the price spread between Brent and WTI has materially reduced the revenues that the Company is able to generate from its transloading operations, which, in turn, has negatively affected the Company’s working capital and income (loss) from operations. The potential for future crude oil prices to remain at their low levels raises substantial doubt about the Company’s ability to meet its obligations when they come due and continue as a going concern.

Despite the decline in demand and pricing for its services, the Company continues to pursue a number of actions including (i) actively engaging in discussions with SunTrust Bank focused on restructuring the existing promissory notes, (ii) minimizing capital expenditures, (iii) reducing general and administrative expenses and (iv) managing the operating costs at the transloading facility. The Company has engaged a consultant to assist with reviewing all options to improve its liquidity profile and strengthen its balance sheet. These efforts continue in earnest, and the Company is considering all available strategic alternatives