GreenHunter in dire straits after catastrophic Q2
Published August 22nd, 2013
Frac’ water treatment and recycling start-up GreenHunter Resources is teetering on the verge of insolvency. The company, which since 2011 has relied partly on stock sales and loans from its own chairman to continue operations, cited “substantial doubt about [its] ability to continue as a going concern” in its quarterly report filed earlier this week.
Quarterly revenues rose from $4.2 million to $8.9 million year-on-year, but GreenHunter posted an operating loss of $2.1 million – a 386% increase year-on-year. As of 30 June, the company had a working capital deficit of $9.1 million.
GreenHunter shares sank 6% on the results, which came shortly after the CFO announced his resignation on 12 July. A replacement was announced on 19 August.
The company expects revenues from recent acquisitions to help it, although it will likely need to borrow more money for upcoming capex projects, which include a wastewater recycling plant in West Virginia.