What's holding back the SP atm is the prospect of another CR. Looking at the report its uncertain whether revenue will be sufficient to stave off a CR although its not clear how much of the cash burn has gone into developing and maintaining the planting program included in the expenses at balance date. Maybe much of the cash burn has already happened so the $4.6 mil on hand maybe enough to see them through before revenue flows start. It all looks a bit experimental at this stage with no certainty of income.
Also on the horizon is the prospect of another 28%+ of the total number of current shares in the form of options to be exercised over the next few years. There are over 200,000,000 outstanding which when excercised will have a deflationary effect on SP.
One of my big reservations is the way options and shares are rewarded to key players in MXC, but I suspect there will be more issued to them as new revenue flows are established.
MXC Price at posting:
4.7¢ Sentiment: Buy Disclosure: Held
