I genuinely believe that the company's weak financial position is what's hampering the attainment of a significantly higher market capitalization. We currently have a MC of less than $500 million USD, when in my opinion it should be at least $1 billion USD at bare bones minimum.
And a big part of their weak financial position as I see things is the balance owing on the Third Eye loan. And what I find so frustrating right now is that the loan is so piddly, by my reckoning less than $15 million USD.
Could HL afford $15 million? I don't have imperical proof, but I have very little doubt the answer is yes. Kenneth Dart has a net worth of an estimated $5.8 billion, I don't know how much of that is available in liquid cash but I imagine that for him to come up with $15 million wouldn't be unlike me coming up with at most a couple grand.
Don has raised how much over the years? Three or four hundred million I believe...there are so many possibilities I can think of. The most obvious is another share offering, 10 million shares at $3 CDN would raise more than enough to satisfy the loan with money left over.
How about another ROFR agreement? They got $8 million from HL USA over a year ago, in October of 2017, that was after just 4 positive DSMB reccomendations, now we're at 8. So China and its associated territories are already covered, so what about Europe with its population in excess of 500 million. If USA rights, with a population around 350 million, were worth $8 million after just four DSMB reports what is Europe worth now with its larger population and Apabetalone further de-risked?
To my way of thinking eliminating a $15 million obligation is not even a major obstacle...but I think the real market players are able to supress the valuation here because, small or not it is a burden. I don't want to minimize it, but I honestly think getting rid of the loan should be no more difficult than flicking a crumb off an otherwise spotless table.
Come on Don, flick the crumb onto the floor and let's get this train moving finally.
