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Bill, from their most recent 10QSB (through June, 1998) I discovered that CHDX reported having about $4 3/4 mm cash remaining, and were in negative cash flow to the tune of about $1 1/2 mm per quarter. Further, the 10Q contained the statement that they believed that they had enough cash on hand to fund existing operations for about another 8 months (i.e., July '98 through February '99). Of course, this is assuming that their ongoing operations only pay off at the same pace as in the past. "Believers" must hope that operations this present quarter will expand on three fronts: 1) Beijing United--hoping for at least $1 mm from operations this quarter, 2) some of the $15 mm loans funded by the I/E bank are spent on purchases by hospitals from CHDX and 3) Loreal products are placed in retail pharmacies in Shanghai. We'll know towards the middle of November, I expect, which is about when their next 10Q is due. BTW, the most recent 10Q also mentions that they'll have to obtain additional financing in order to open clinics in other cities, and I also learned that CHDX has 2 mm shares of "Class B" common outstanding, in addition to the 4.7 mm of "Class A" common. I believe that Class B shares have more voting rights attached to them than do the Class A shares (investors such as us trade the "Class A" shares, I believe). |
