Verde Agritech Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Verde Agritech

NPK.TO 1.100

+3.8%

Nov 10 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: wmoura	9/10/2015 7:22:51 PM
	of 16582

Recently I was digging business opportunities and visiting some jr. mining companies in Brazil including this one. The following issues called my attention: (1) Surprisingly a small staff based in the Brazilian office, only 6 in a fancy space that holds 40. Is this team capable of delivering high performance and recovering shareholders’ confidence? (2) I asked one directly involved in the company’s operations if they had any litigation in progress, the response was positive but evasive without detailing any or the amounts involved. Then I requested a firm to prospect information in connection with any litigations or potential liabilities eventually not disclosed in the company's financials and MD&A reports and the disturbing outcome is as follows: (2.1) one arbitration process versus a local environmental consulting firm in the claimed amount of BRL 600,000 plus legal expenses; (2.2) four labor claims filed by former employees whose claimed amounts ??range from BRL 170,000 to BRL 3 millions each plus legal expenses. If the company loses partially or all legal disputes in progress will be there a significant impact in the company's liquidity and ability to finance its operations without raising additional equity or debt financing in the near future? Why not disclosed? (3) One also mentioned the company's priority is to get the environmental permits as soon as possible for the project but was unable to provide an effective deadline and just claimed they have been working hard with the Brazilian authorities. But if this project is so important to the country's economy and agribusiness why so much delay in the analysis and approval processes? (4) Finally I questioned one if such long delay in getting the environmental permits would not compromise the company’s ability to obtain BNDES’s financial programs for Phase 1 pending since 2014 announcements. The answer was “nothing changes”. On the other hand there are strong rumors indicating BNDES would soon be cutting its financial programs budget, in particular the higher risk ones and those dedicated to promoting innovation as a result of economic and political crisis the country has been facing. How long will BNDES be waiting for good news?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next