John,
Apparently Norm has been dealing with a family situation from my most recent information.
Regarding financing and the company's cash burn rate, I would assume that much of the money came from cash on hand at the time of the trading halt. BC also has been known to loan the company money in the past, but without the most recent 10Q/K, it would be anyone's guess. And I don't Bill would be allowed to discuss any kind of financial issues without ticking off his lawyers. The last thing I want to see is Bill discussing this topic and the information finding it's way to the internet before the SEC filings are submitted.
I understand the impatience, and I feel it quite acutely myself, but we have to be sure and understand that Bill's willingness to discuss non-publically documented/filed information, while I believe honorable, is part of the reason we are in this mess in the first place. And I am just as guilty of wanting to share this info out here on SI as anyone else. That is a mistake that I do not want to repeat and is exactly what Bill's attorney's get paid for.
As to attorney fees, I would hope the majority of these expenses have already been incurred as a result of representing the company and negotiating the settlement with the company. Additional attorney fees for other representation are probably based on the amount of work that they do for the company.
One thing I feel fairly confident of is that their has not been a Reg S financing deal due to the lack of liquidity in the stock's market. Any other kind of placement would be fine in my estimation, dependent on offering price and assurance that the shares are restricted. I have told BC in the past that I would lose a considerable amount of faith in he and the company should they ever resort to a Reg S, and especially a highly dilutive one. I believe that he would concur with me and avoid this option.
And regarding the LP, yes any profits would be distributed to the LP's based on the current ratio of ownership they hold. GRNO, the last I heard still holds a 10% stake in the LP as general partner and if there had been a change we would not be able to discuss this. But I don't know of any.
But you have valid concerns about the amount of cash available to the company. I am hoping that BC is making loans available to keep the company afloat until a deal is locked in. I will become considerably more concerned should we not have any positive news on contracts by late February-March. My rationale for this is that we all know that two companies, RecOil and Mid-West have signed contracts in 1996. They have until June 30th of this year to have their plants installed and operating for them to capture Section 29 tax credits. If I don't see something positive with regard to these outstanding orders by the end of winter, I will begin to assume that they may not be planning on Sections 29 and have altered their schedules.
Also, RecOil has a considerable stake in GRNO's stock, and thus, a considerable stake in getting its act together.
But of course, the SEC and DHEC situation sure hasn't helped any, has it?? :0(
Just my, (and solely my), opinion based on past facts and current guesstimation.
Regards,
Ron
Regards,
Ron |
