Geomega Resources Inc. TSX:V GMA/ OTC: GOMRF – A rare earths company located in Quebec, Canada announced today that the company has completed its retrofit of its pilot plant and Geomega has now begun production of its very own hand sanitizer! As production for hand sanitizers begin Geomega Resources will be able to produce 675 liters per week and the company will be working on securing supply agreements with key entities in dire need of supply such as hospitals and nursing home in the province of Quebec,Canada.
Geomega is also undertaking a measure of goodwill to be proud of as the company will be reserving 20% of its production of hand sanitizers to be donated to long-term care homes and other charities who are most at risk in local communities in the province. This initiative is a great way to give back to its community and one that Geomega can be proud of.
Geomega has cash for the next 11 months
In a recent article from Simply Wall.St mentioned that as of its last reported financials in November 2019, Geomega had zero debt and cash of CAD $838,000. Simply Wall.St also stated that the company had enough cash to operate 17 months from its financial filings in November 2019, and fast forward to today, this leaves Geomega with enough cash to operate for the approximately the next year without needing outside sourcing for capital. In addition to Geomega’s cash position, the ompany has approximately 5.7 million warrants priced at .15 cents and are now ATM (at-the-money). With further great news and great execution, the share price should appreciate greatly thus making the warrants in the money and investors may exercise their warrants which would provide additional funds for Geomega. If the company were to exercise all of its warrants on the books, this would add approximately CAD $850,000 in cash to further its operations.
With a low cash burn, cash in the bank and entering a hot market like hand sanitizers, we believe that upon great execution and delivery of big news that shares of Geomega Resources may break out above its previous resistance of $.21 cents and reach our price target of $.30 cents.
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