Yesterday, Crowflight Minerals Inc. (TSE:CML), (PINK:CMLGF) stock made the next deep drilling, losing 16.67% of its value.
The second wave of selling on the latest news about the company temporarily suspending the ore production and mining operations at the Bucko Lake Nickel Mine ruined CML shares.
As the company stated, in order to introduce its own equipment and team and also in the name of the “readjustments to address certain operational issues”, following the reported operating revenue of almost $10 million at the end of this June the company suspended operations.
The investment community was much earlier well aware of the fact that despite the revenues Crowflight Minerals Inc. still has liquidity problems.
At the beginning of September, the company filed with SEDAR that it has issued and sold convertible debentures to King Place Enterprises Limited in the principal amount of CAD 10. 05 million. The debt matures at the end of February next year.
Earlier, the company issued and sold a non-convertible debenture in the principal amount of CAD$5.05 million to King Place, which was canceled and replaced by the above mentioned new debt.
All this led to changes in the management body of Crowflight Minerals Inc. In addition to the liquidity problems, the company faced the issue of its management reorganization. Starting last month, Mr. Zhu was appointed to the company’s Board of Directors and he will act at CML as a King Place Enterprises Limited’s representative.
King Place Enterprises Limited is Crowflight’s largest shareholder and creditor. Relying on its major stakeholder, the company announced last Friday that it is in negotiations with King Place to arrange a debt facility of CAD $20 million to meet its needs of capital.[BANNER]
The announcement that the company terminated the negotiations with Jinchuan Group Ltd. due to a not received extension to the offer letter from Jinchuan Group Ltd. looked thus minor. Who knows, maybe CML stock drilling is somewhat overdone, since the company has the potential to generate revenues. In addition, Crowflight Minerals Inc. looks like being on the road to overcome its liquidity problems, only it is not known at what price.
Yesterday, CML closed at $0.05 per share on a volume exceeding five times the average for the company. Since the date of the press release about the new member of the company’s Broad of Directors, CML stock price has lost 57%.
