Justice Sirikah

Helix Wind Corporation (OTCBB: HLXW) Flirting with an Overambitious Acquisition

by Justice Sirikah August 19, 2009
hlxw_logo.png   It seems like development stage company, Helix Wind Corporation (HLXW.ob, or OTCBB: HLXW)  is overzealous in its attempt to demonstrate how two literal wrongs make a right. Recently incorporated into Clearview Acquisitions, Inc. which has neither generated revenues nor profit since inception, the clean energy firm on Tuesday reported facing a November 1 deadline to negotiate funding hurdles prior to acquiring all assets of bankrupt enterprises, Abundant Renewable Energy, LLC (ARE) and Renewable Energy Engineering, LLC (REE).

  Worse still, when it becomes a done deal, Helix which already has limited financial muscle compared to its competitors, will have to take up all the outstanding debt obligations tied in to the purchased businesses. So where is the economic logic in all this, and really, can Helix guarantee that the proposed acquisitions will come in handy in lifting the company out of its current financial quandary without losses to investors?

  Consider this:  The continuity of Helix as a going concern was already in doubt since December, 31, 2008, when it declared a working capital deficit of $134, 723, plus $492 in cash and no assets to write home about. As if this were not enough, it’s obviously a bad omen that both ARE and REE are under voluntary Chapter 11 protection, having found the going tough amid jammed credit markets which has been taking a toll on wind energy development of late.

  Whatever the case may be, Helix said it has already signed a non-binding letter of intent to buy out the two equally troubled companies in a transaction that could cost it between $4 million to $6.5 million, in addition to restricted stock. The sealing of the deal is dependent on the approval of the U.S Bankruptcy Court and the buyer’s negotiation and execution of definitive agreements with ARE, Helix announced.

  “Successful completion of this transaction will further expand our business in the renewable energy space”, bragged the company’s chairman and president, Scott Weinbrandt. “We are proud that Helix is continuing its strategy to roll up other ‘best of breed’ alternative energy and small wind companies to become the dominant company in this business”.

  HLXW stock went up from $2.54 to $2.72 on Tuesday. By the time of writing it had added another 11 cents, or 4.04 percent, bidding for $2.83.

Comments 1

1. Guest
August 22, 2008, 12:13PM

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