Hi, no idea what is happening with GLK. They are clearly facing some serious financing issues, hopefully they could close soon their announced private placement. The recent departure of many Directors and the lack of any announcement regarding sales contracts with customers are obviously sources of concern. However, lets give them the benefit of the doubt and see if they are able to sort things out. The short term goal is to obtain financing.
They are ambitious and working differently than other graphite juniors (low capex partnership middleman model VS high capex owning the production resources model), my issue with this model is that it is difficult to value the company if they dont own any tangible assets, it is also more difficult to obtain financing especially debt, financiers love collaterals and tangible assets. As an investor personally I prefer the company to own the assets instead of just partnering or leasing them. This could happen in the future (owning and buying thei own assets) if they succeed initially with their model. Time will tell though.
