Jovita Baltrusaityte

Hague Corporation (OTCBB: HGUE): Distress Signal Indicated?

by Jovita Baltrusaityte June 9, 2009
As if the foregoing issues are not be enough, the company seems to have even more problems.They had an arrangement with William Marsh Rice University where they had to pay $5 million for a patent license on a new technology where Quantum Dots were used. However,  Hague never had the money (as of March 31, assets were $411,000). And now that the deal has been suspended, they received notice that a debt of $3,500,000 to Rice. What is the company going to do? If it issues more shares to cover the debt, the present shareholders would be greatly diluted. Is there a way to get additional financing?

Besides, the financial side of HGUE does not give me much comfort. In a single quarter (I am talking about the one ending in March), current assets decreased from $506,000 to $111,000. If you counted the money in the bank, you would see that this was a loss of $381,000. Does that sound sane for you? In addition, the company hasn't made any sales, and the loss extended up to $420,000. Although it looks like Hague is able to cover its current liabilities, long-term debt of almost half a million is still floating like a shadow.

Despite that, the corporation seems to be on the way to making some changes. Last week HGUE paid $11,000 to Stock Guru for stock promotional services. The stock price hasn't still been affected. Any ideas why?
The Recent Activities of Hague Corporation

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