In addition to no sales, the company has also just announced it is suspending a purchase order in Guyana, citing delivery issues and litigation. In the past 10 years cumulative sales have been minimal (about $3M total). Cash flow has been negative all that time and it has never made money. The cash position is now very low (it just raised $1.5M). The share count has more than doubled in ten years. Mr. Sprott at last notice (Aug 2023) had 7.9% of the company, but he is no longer an insider and does not have to report any further sales. The stock is down about 90% in four years. Like most small caps, it struggles for attention, but its dilution, losses and weak performance history certainly do not help it attract buyers. At some point, companies need to at least have sales. After 15 years, we think investors have given it enough leeway. We can't really say there is anything nefarious going on, just very weak (so far) fundamentals. It is going to need more money, and unless somehow it wins a multitude of new sales orders, we would expect it just to continue its listless drift. We would imagine Eric Sprott is selling (or has sold) but he is a disciplined investor and if so will likely do this over a long period so as not to pressure the stock further.
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