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LICT - LICT Corp


mbrock77

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Agree that I did not see anything new in the Q2 release either.  Guess I don't know what is driving the price either but it has been on heavier volume (20 shares vs ~10 avg, huge  :) ).  Maybe someone is expecting more from the $STRP liquidation.  I briefly looked at that and while it may add a bit to the value it would not account for this move.  Could someone be speculating on a buy out?  Wondering whether to wait around to find out or exiting while there is a bit of liquidity. 

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So, in my Schwab acct, my LICT position was renamed this morning to "2455963 - 1/10 Lict Corp" and looks to be untradable. I don't see this in my IB acct, which also owns the stock. Anyone else seeing this and does it mean anything?

 

UPDATE: Answer from Schwab: they can't handle electronic trading of stocks with prices in the five-figures, so I now have to call them to trade it.

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https://www.businesswire.com/news/home/20200319005466/en/LICT-Corporation-Closes-New-50-Million-Revolving/?feedref=JjAwJuNHiystnCoBq_hl-cgirDCILqEKr_G6FnCB4juIlGA7NBCjGPFNaaihzP-l7dI9_69nqXXndEkzoNy31peBvhKXN8xoKDPrCnMXhC58cMd5Jhr97vTYoLZQbGkS8kO5_1Q98wBQ99OUsd6C6Q==

 

The press release says: "LICT Corporation (“LICT” or the “Company”; OTC Pink ®: LICT) has borrowed the entire $50 million under its revolving credit facility with CoBank. The addition of the $50 million in new borrowings increases LICT’s pro-forma gross cash balance to just under $90 million with net cash of $76 million." 

 

How do you draw $50 million from a credit line (thus creating $50 million in new debt) to get to $90 million in gross cash, but also have $76 million in "net cash," which I assume means cash minus debt?  If your gross cash is actually $90 million, wouldn't your max "net cash" be $40 million (90 - 50)?

 

More broadly, how does drawing on a credit line have any immediate effect on "net cash"?

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