It seems likely that the yes votes will prevail, but in the unlikely event that they don't, I don't see how WUC would end up with the Hansen/Taylor Ranch project and both ablation machines. Assuming BLR couldn't raise the $450k plus accrued interest, WUC could foreclose on various assets to the extent the value of the assets equaled the debt. Assets pledged under the credit facility include all outstanding shares of BLR's U.S. subsidiary, all personal property, and real property associated with the Hansen project. According to Mineral Ablation LLC's unaudited 12/31/14 balance sheet, the book value of the 5-ton ablator was $2 million USD. The book value of the smaller unit was $1.1 million USD. If these carrying values are anywhere close to fair market value, either unit alone would cover the debt easily. WUC could foreclose and take possession of the small ablator to satisfy the debt, and the 5-ton unit and Hansen assets wouldn't even come into the picture. However, what if the ablators are worth far less than the carrying values? In that case, one might question BLR's financial reporting, specifically whether impairment testing had been done on the ablators as required by U.S. and international GAAP.
BLR Price at posting:
0.2¢ Sentiment: None Disclosure: Not Held
