Hello Lab, I could use your help. I am analyzing a stock and have come to a disagreement with a number of people regarding the interpretation of this sentence. Following is the sentence in question:
<<The Company believes that existing cash and cash equivalents, cash flow from operations, and cash raised through private placements of securities will be sufficient to meet the Company's presently anticipated working capital needs for at least the next 13 months.>>
Can the term "cash raised" be referring to cash to be raised in the future via private placements, or to cash already raised, or both? Is that sentence somewhat ambiguous?
I believe the following sentence which I made up could also refer to money to be raised in the future (though it could mean the past, too):
We believe the money raised from cake sales will be sufficient to meet our future expenses.
In the former and latter sentences it is my understanding that depending on the context, the "to be" in front of "money raised" could be understood, even if not specifically stated.
Following is the complete context of the paragraph in which the money raised sentence first appeared:
<<The Company believes that existing cash and cash equivalents, cash flow from operations, and cash being raised through private placements of securities will be sufficient to meet the Company's presently anticipated working capital needs for at least the next 13 months. The Company regularly evaluates various potential acquisitions, which could require a substantial portion of the net
proceeds from the exercise of the Warrants. To the extent the Company uses its cash resources for acquisitions, the Company may be required to obtain additional funds, if available, through borrowings or equity financings [i.e. Private placements]. There can be no assurance that such capital will be available on acceptable terms. If the Company is unable to obtain sufficient financing, it may be unable to fully implement its growth strategy.>>
Your insights into this sentences meanings would be very much appreciated.
Thank you in advance.
VALUESPEC
|
