B. Riley Financial Announces Pricing of Senior Notes Offering
- Press Release
We, Mike Crawford and Sarkis Sherbetchyan , certify that this report reflects our personal beliefs about this company and that no portion of our compensation was, is or will be directly or indirectly related to the specific recommendations or views discussed in this report.
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• Debt – The company’s debt is secured by substantially all of its assets. Should the company fail to make timely payments on its debt, or otherwise fail to comply with its debt agreements, debtholders may foreclose on the company’s assets.
• Financing Needs – The company will require financing until its asset development has begun to produce revenues and operating profits. If the company is unable to obtain financing to successfully develop its land and water resources, the company may be unable to continue as a going concern.
• Financial Results – The company’s land and water development activities have not generated material operating results and continue to incur net losses. The company’s agricultural operations have generated de minimis revenues.
• Growth Plan – There are many factors that may impact the company’s ability to achieve its stated growth objectives.
• Loss of Key Personnel – In our opinion, the current management team will be instrumental in executing the company’s growth strategy. The resignation of a key member of management would have a negative impact on the company.
• Regulatory – The development of the company’s land and water resources assets are subject to local, state, and federal government approvals and permits – which could be denied by the government, or may compete against other government interests and/or objectives. Further, third parties may challenge proposed plans and/or approvals, which could cause delays and increase the costs of the company’s development efforts, or could prohibit development entirely.
• Weather – The aquifer system underlying the company’s property is naturally recharged by precipitation (both rain and snow). Thus, the availability of water supplies could differ from year-to-year due to natural hydrological variability.
• Refer to the company's SEC filings, particularly its 10-K filing, for a discussion of additional risks.