These guys will run out of cash long before any of their initiatives materialize. To survive they'll need a secondary and those things typically go off at 50 cents on the dollar. My bet is this decline is anticipating that event.
I agree that they are prepared for a private placement, given the shelf registration, and the SEC filing about a private equity presentation but if Yima begins commercial production this summer, as Rigdon said it would, there will be some positive cash flow from that and if the back monies from the closed plant are settled, they may not be as cash needy, or desperate, as one might think. I doubt if Rigdon gave up a major share of current income for options that would be severely diluted less than 6 months later. He knows a lot better than us about what is going on. and potential
Just my thoughts.
You and I will be getting together this December for the sharehoulder's meeting.
Based on my feelings of how they will be able to stretch the $11.7 million working capital until they get The revenue from Yima going.....I will bet you this.....I will say that they will not do a secondary offering and will be able to make it with the cash they currently have.
But as a professional gambler....there is nothing called a gentleman's bet.....
I will give you 2 to 1 on $100.
If they do have to do a secondary I will owe you $200......If not you own me $100.