While Puntman went about it the wrong way, he does have a point.
Tulla keeps throwing money into QMN to keep it going. Ask yourself would you happily put more money into this business based on your experience so far? Even if they threw some options in I'd be very hesitant.
But Tulla aren't holding back and as Puntman notes there are no guarantees on the loan.
A couple of years ago I was involved in the accounting for a mining company in Australia - they had a large interest in a TSX listed coal explorer in Canada (Cline). The Aussie company held a hugh unrealised loss on their initial investment. Despite the unrealised loss on their hands the company forked out an additional loan to help the business continue with its operations. Just before the loan was provided Cline was trading at 35c a year later their shares peaked at 4.50.
I'm hoping that Tulla has some plan to recover their investment and make some money.
QMN Price at posting:
4.4¢ Sentiment: None Disclosure: Held
