Replies to post #13470 on Value Microcaps Junior Energy

[10 bagger]

SEQ.to/SHGCF

ANY FURTHER NEWS ON THIS EXTENTION..

Shoreline Energy Corp. (TSX: SEQ) ("Shoreline" or the "Company") is pleased to announce that it has received a 30 day extension from its lender ATB Financial to comply with certain working capital covenants under the terms of its loan facility. Shoreline requested the extension in order to have adequate time to complete closing of a new credit facility secured against its US assets which are not included in the Company's current borrowing base.

Since Shoreline's March 31, 2013 breach of its working capital covenant, the Company has improved its working capital deficit by approximately $6.5 million, partially as a result of a the sale of a non core asset and from the sale of flow through shares for gross proceeds of $5,600,000.


The Company delayed its 1st quarter dividend while accommodating the closing of its common equity private placement and delayed the 2nd quarter dividend to accommodate the closing of its flow through share private placement. The Company intends to return to its regular quarterly dividend schedule and declare a total $0.48 per share in dividends for 2013.

[2morrowsGains]

SEQ.to/SHGCF...Market cap only $22.5M. Shoreline was finally up today after dropping 10 days in a row. Up by only $0.02, but in a down market. Maybe this is a sign this one is bottoming, but you never know.
Shareholder equity = approx $4.06 per share. Share price = $2.47.
Dividend yield = 19.4%.
BTW, Shoreline has paid a distribution for 4 years total (2 years while operating privately as a fund before IPOing).
One of the things that attracts me here is the projected reduction in debt to cash flow for 2014...

2012 debt to cash flow ratio was 10.7.
2013 debt to cash flow ratio is estimated to be 5.3.
As production rates on the Company's U.S. assets increases, management expects that funds from operations will begin to decrease the Company's net debt and the Company will target a debt to cash flow ratio of between 1.8 and 2.5 times for 2014.

Time will tell where things go from here. I'm continuing to hold, wait, and accumulate for now.
Hopefully Shoreline announces news soon regarding closing of the $15,000,000 term loan.