In checking the Balance sheet,they list Total Cash of 32.55 million,Total Debt =1.02 Million, and Cash per share =$ 2.81. But then looking at Cash Flow, Operating Cash Flow = -16.82 million ,while the Book Value is way above the share price at $3.45 ....Just from a brief study,it looks like a lot of value is locked up here....kind of surprising numbers ...How do they have a cash pile and keep a high valuation with a constantly negative cash flow?
"RENO, NV--(Marketwire - July 25, 2011) - Altair Nanotechnologies Inc. (NASDAQ: ALTI) (Altairnano) today announced it had closed on a Share Subscription Agreement with Canon Investment Holdings Limited (Canon), through its affiliate, Energy Storage Technology (China) Group Limited (EST). Under the terms of the agreement, Altairnano issued 37,036,807 common shares to EST at $1.5528 per share, providing $57.5 million in proceeds to Altairnano. Following the closing of this transaction, there are 69,452,487 Altairnano common shares outstanding. "
On September 20, 2010, Altairnano announced that it had entered into the Share Subscription Agreement, as amended, under which Canon had agreed to purchase newly issued common shares of Altairnano, which resulted in EST owning 53.3 percent of Altairnano's common shares, 49.8 percent on a fully diluted basis, immediately following the closing.
"While this transaction took considerably longer to close than expected, the Canon investment allows us to now focus on growing the business and creating shareholder wealth," said Terry Copeland, Altairnano president and Chief Executive Officer.
Canon chairman Wei Yincang added, "The investment in Altairnano represents an important milestone for both companies to significantly grow our businesses and accelerate the commercialization of the Altair lithium-titanate technology."
if you had a negative cash flow ... what would you do? Start selling everything you have.. most likely or worse mortgage something. Since ALTI has little actual sales of products ... its selling and or mortgaging everything else. Reno facility mortgaged and for sale. Production equipment sold to subsidiary in China with perhaps an advance loan for payment to cover shipping costs ...etc.
And of course there is always more stock that can be issued to raise $ ...
Be very careful when looking at companies with assets in China. Just like ABAT there is little confirmation by any outside authority that any cash is really in the banks. And in ALTI's case that includes the loan that is supposedly backed by cash from its Chinese subsidiary.
If you were wise pay heed to USAR.
i believe if you look at the Cannon investment it was rather a circle event. Cash to ALTI ..
almost all cash returned to china under a subsidiary to start production in china... Cash is prevented from being repatriated to ALTI US. My guess is Cannon either has the cash in China and or controls the cash ... thus Cannon got its own money back for investing in ALTI.