I just listened to the ½ hour teleconference and feel even more upbeat.
I'll "read between the lines spoken" and conclude important points.
(1.) Those people that have been running this company for the past 5 - 10 years have recently in the past year advanced the gold extraction system in both chemistry and hardware to where it is now ready for "prime time" (1) the efficiency of gold extraction for selective ores is over 90% (2) the scalability is "best case" in that a complete system is small, low cost, with rapid deployment that allows good initial results to finance and warrant additional systems to be added.
(2.) Officers of a public company have a fiduciary responsibility to protect shareholders value, and while Haber is now technically a private company with shareholders, it is accepted business practice for a company in a situation like Haber finding itself with no cash reserves and no revenue, needing to obtain capital or cease as a business, will choose keeping the company viable at the expense of the shareholder base thru a reverse split like (20-100):1 and issue new shares to an investing group that supplies the cash while obtaining near total shares issued, in effect the investments of the prior shareholder base can be viewed as money lost in a failed company that was restarted with the prior shares being nearly eliminated, and a new share base being issued for the new investment money to reflect that they acquired a near worthless company to grow to profitably by taking all the risk. An additional element most often observed is that the officers of such a company have a high enough percentage of shares prior to the split, with the additional ability to issue large numbers of shares to themselves after the split, that they escape the near total lost in investment occured by common shareholders, and over time acquire a return equal to what they would have received if the company initially became successful.
(3.) My interpretation of the teleconference tells me why the avenue in (2.) was not taken, but the officers continue to do what they have done over these years, that being to work without pay and input into Haber their own personal capital to keep it running. Simply put they were over confident those 5 - 10 years ago of a quick and prosperous return that they convinced friends and family members to invest steeply into Haber as common shareholders. Thusly doing (2.) would wipe out the investments of friends and family members, the investments encouraged by the now officers of Haber mostly being retired having had very successful careers with excellent savings and pensions, while the family members and friends mostly are not in that category.
(4.) For relisting so that HABE shares can trade on a market, it was mentioned that many options are available.
(5.) I predict a successful venture to start inside one year, followed by a relisting inside 6 months with an effective value for today's HABE to initially be $0.05 with rapid climb to $0.25 in the next 6 months, followed in 2 - 3 years to over a dollar.
Doug |
