I agree this is great news. 86 mil left to pay isn't chump change---but they can come up with 20-30 mil more just in cash flow in the next 3 months. We'll have to see the details, but no hint of stock offering. Makes you wonder if there isn't yet another deal in the works contemplated. Or maybe enough time and cash flow emerged on this one that the shelf registration wasn't needed. But this was a big deal in the sense that they're paying for the facility with less than 3 years of earnings that the facility itself generates. What? How can I get a deal like that????
I think if you look at the absolute worst case scenario for the "other" financing, you might not be so concerned.
The PR this morning clears up an awful lot of the speculation (pro & con) that has been going on the past few months. Like anything, if you try to over-analyze it, ghosts will suddenly start appearing, so my suggestion is - don't do it! Take it for what it is, a company on the verge of big time growth in a stupid simple business, with lots of barriers to entry.
Just read Kevin Chen's reports - it is all there. Really no need to look any further.
The only pieces now missing are to get rid of the big seller who has been plaguing this for months (preferred sellers?), and get the attention of Wall St.
Great point. The CEO is a young man in his early 40's, he might become the next T. Boone Pickens in China at this rate. Partnering with the government, and the govenment acting as LPH's facilitator for new facility purchases, the terms of the loan could be quite impressive! Also, new facilities every 2 years and LPH is a multi-billion dollar NYSE company in the near future.