LionTown has debt, pls has cash (well did) i don't follow them anymore and I have no idea on their financials but when i did they had like 2bil in cash (but that was some time ago) When you're a business trying to pay debt but possibly (likely) selling your product at a loss, you go broke or you need more capital.
You achieve this buy selling more shares or going to the bank or potentially other institutions or companies.
The reality here as much as a lot don't like to admit is that if the price of spod does not increase, LTR will be burning cash every qtr to the sums of millions. This can only last for so long.
As many here have 'faith' or trust or whatever you want to say it in the Board, we're (me included) still here because we assume, think and hope the way of a take over bid or a cash injection from a company who wants to buy our spod (lg comes to mind) will help the cash position without and equity raise that will dilute 'us'
If Tony can wave his magical wand (as i've seen mentioned here) and get a company with deep pockets to invest in us (similar to how LG did it at 1.80) we will be fine. Ideally this would be at a much higher share price or in the distant future.
But Tony would be very aware of all this and you don't invest if you don't trust the management knows what they're doing. If Tim or Tony had sold last week i would feel very different about this situation, i'm still on the fence about Linda selling, i know people need the money but after your partners (family) business has lost millions (on paper), why sell into the next and only rally we have seen in so long! just go to the bank and get a short term loan.
LTR Price at posting:
64.0¢ Sentiment: Buy Disclosure: Held
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