Your continued attempts to inject a negative spin at every opportunity calls your motives, as well as your morals, into question. It's hard to believe you have the audacity to shoot your jaded barbs at others on these threads.
Capital Guardian did not do the $32M placement so Valence could immediately clear current liabilities. From the 12/23/99 PR: "The sale, which is pursuant to Valence's existing S-3 shelf registration, provides the company with funds necessary for the continued commercialization and distribution of its advanced technology, lithium polymer rechargeable batteries. The funds will also be used to purchase raw materials, build finished goods inventory, and finance expansion of the company's production capability."
The consistent trend of current liabilities is very important, as it shows Valence was managing these well with their creditors as cash was generated via equity sales throughout 1999, without going further into the hole.
If current liabilities had been increasing throughout the year, this could be indicative that Valence was falling further behind and might have to use more of the CG financing to hold creditors at bay. But there was only one slight uptick in 4QCY99 as Valence ramped up production.
As you said, current liabilities must be cleared within a year. If Valence is continuing operations without increasing current liabilities, is it not clear that some equilibrium has been reached? That being the case, your suggestion that "much of the $13.4 million of current liabilities that were reflected in the December balance sheet were payable long before December of 2000" makes no sense.
I believe we will see Valence still has right around $20M in cash in the March balance sheet.
Say "Hi" to nowaynohow for me. LOL! |
