The Debentures mature on December 23, 2019 ("Debenture Maturity Date"). This news release follows the Company's news release of October 25, 2016, in which Canamex raised gross proceeds of $4,239,000 in the first tranche of the Debenture Offering. In both tranches of the Debenture Offering, Canamex raised total gross proceeds of $4,798,000. Interest on the Debentures shall be paid annually in arrears, at an annual interest rate of 7%. In the event that the Company has not entered into a definitive joint venture agreement in respect of the Bruner Gold Property ("JV i need loan for business Agreement") on or before the date that is six months after the closing date of the Debenture Offering, the interest rate on the Debentures will thereafter be increased by 1% and will be subsequently increased by an additional 1% immediately following the end of each six month period during the term of the Debentures if at such time the JV Agreement has not been entered into. In addition, the holders of the Debentures in the final tranche received a total of 3,493,750 warrants ("Debenture Warrants"). The Debenture Warrants have a strike price of $0.20 and expire on the Debenture Maturity Date. On December 23, 2018, the Debenture holders in the final tranche may request that the Company repay the Debentures within 20 business days ("Put Feature"). The Debenture holders will only be allowed to utilize the Put Feature on this one specific date.
Inventory management. Firm value is enhanced when, and if, the return on capital, which results from working-capital management, exceeds the cost of capital, which results from capital investment decisions as above. Identify the cash balance which allows for the business to meet day to day expenses, but reduces cash holding costs. Using the working capital formula and the information above from Figure 1, we can calculate that XYZ Company's working capital is: InvestingAnswers Feature: Financial Statement Analysis For Beginners Working capital is a common measure of a company's liquidity, efficiency, and overall health. Identify the level of inventory which allows for uninterrupted production but reduces the investment in raw materials—and minimizes reordering costs—and hence increases cash flow. One measure of cash flow is provided by the cash conversion cycle the net number of days from the outlay of cash for raw material to receiving payment from the customer. Current liabilities are any obligations due within one year.
Identify the level of inventory which allows for uninterrupted production but reduces the investment in raw materials—and minimizes reordering costs—and hence increases cash flow. By definition, working capital management entails short-term decisions—generally, relating to the next one-year period—which are “reversible”. However, the company must have enough working capital to buy inventory and cover payroll during the off season as well, when revenues are lower. Analysts commonly point out that the level and timing of a company's cash flows are what really determine whether a company is able to pay its liabilities when due. Use working capital in a sentence “ Purchasing the nuclear targeting array depleted almost all Acme's working capital, but the investment paid for itself in just a few weeks. ” Was this Helpful? Since the inventory on their balance sheet is normally ordered months in advance, it can rarely be sold fast enough to raise money for short-term financial crises by the time it is sold, it may be too late. Working capital management edit Decisions relating to working capital and short-term financing are referred to as working capital management.