If there is a change in control, they'll need to raise money pretty quickly. From the filing:
In August 2003 the Company arranged a credit facility for up to $2.0 million which is
fully drawn. This facility is secured by a mortgage of $2.0 million on the Company’s head office in
Markham, Ontario and bears interest at 2.0% per month. Pursuant to a May 2004 extension agreement,
all unpaid principal and interest under this facility will become due and payable on September 30, 2004.
Also, this:
Effective November 21, 2003, the Company and Investissement Québec amended the
terms of the existing agreement. Under the new terms, $320,346 was paid in December 2003 and the
balance of $2,242,420.09 will be repaid in seven equal semi-annual installments of $320,346
commencing June 2004. Interest is to be paid monthly based on the variable rate set by Investissement
Québec plus 2.0% per annum.
Not to mention this:
In
February 2004, the Company negotiated a payment schedule with Provalis. An initial payment of GBP
150,000 (US $280,000) was made in February 2004 with the balance being paid by monthly installments
of GBP 110,000 (US $205,000) in principal and interest until March 2005 and a final installment of GBP
47,000 (US $88,000) in April 2005. See “Risk Factors - Debt Obligations”.
Or this:
Under the terms of the Oxo Chemie purchase agreement the Company is required to
make a payment of US$9.24 million in each of November 30, 2004, 2005 and 2006. The Company has
previously satisfied its payment obligations under the Oxo Chemie purchase agreement through the
issuance of common shares of the Company. At the market price of the Common Shares on the date
hereof, the Company will not be able to satisfy the obligations under the Oxo Chemie purchase agreement
on November 30, 2004 by issuing Common Shares without TSX and shareholder approval. There can be
no assurance that such approvals will be obtained. A shareholders meeting has been scheduled for
September 21, 2004 at which time shareholder approval could be sought, but no assurance can be given
that such approval will be obtained. If such approvals are not obtained, the Company will be required to
satisfy these obligations in cash. See “Significant Acquisitions”. |
