re: the noose gets tighter
What’s the good news? Time and again, Melrose crowed loudly that MHI is a world class financier and had shown great faith in CMQ – just to see MHI abandoned the sinking ship.
We have the 20tpa MHI name plate capacity officially mentioned as 18tpa name plate capacity and even this downgraded capacity is unlikely to be achieved in the near future!
Recent investor update weeks ago ‘provides for the shipment of $1.4M sales over the next 9 months’ and now CMQ is required to achieve gross revenue of $4M for the year ending 30 June 2006. Revenue for the first quarter was $28,000 and this new financial covenant is a tight noose round the neck of poor little doggie. But what else can CMQ do? Not to agree to the MHI/Stark demands would have drove CMQ to the walls. This new agreement buys an extra few months of borrowed time.
This time around, a rehashed contract from the likes of Inviro Animal Health Solutions will not save the day.
CMQ Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
