Ben,
From today's PR: "CanFibre's other MDF facility, CanFibre of Lackawanna LLC (``Lackawanna'') has not suffered the same fate as Riverside. Construction of Lackawanna was completed directly by CanFibre following the bankruptcy of SWEC and Lackawanna continues to operate producing high quality MDF in a range of commodity and specialty grades."
Anyone looking for a reason to buy into the company wouldn't find it in this statement. Sure, Lackawanna is still alive, that we know (it hasn't suffered the same fate yet!). But what about the critical issues which will determine whether or not Lackawanna will follow Riverside down the path to liquidation? ...info regarding the raising of additional capital, and the status of the ramp-up at the plant, including information on the demand for , and quality and quantity of board produced. These things, IMO, are key to Canfibre's success. Our Riverside experience is testimony to the importance of these factors. I can't see any buying interest emerging until the company is more forthcoming about progress being made...progress toward profitability, that is...assuming that such progress is in fact occurring. What has the approx. US$6000/mo investment in investor relations done for us so far? Rhetorical, don't answer.
In the next PR I would advise the company to address the significant points raised in last August's PR:
"CanFibre and its subsidiaries, CanFibre of Riverside Inc. and CanFibre of Lackawanna LLC collectively continue to experience a critical cash shortage with decreasing losses being incurred from operations before interest, taxes and depreciation. Immediately subsequent to the transaction, the consolidated balance sheet of the Company will contain US$137.4 million in total assets and US$147.6 million in total liabilities. The company does have sufficient available cash to meet all of its current obligations and is expected to generate additional cashflow from sales to meet such obligations on an ongoing basis. To supplement this, however, and subject to normal regulatory approvals, CanFibre intends to issue a small private placement of approximately $500,000 in the next 30 days possibly followed by a slightly larger private placement before the end of this year. Other than the Management commitment outlined above, no other commitments have been received at this time."
In the meantime we bide our time and wait...as we have, year after year! |
