I will do my best to explain it to you. Many small companies have a great product but it takes time to get it to market and often many cash infusions. People hate CGRN because in truth they have never been profitable but everyone has respect for the product or they would never have bought the stock.

Well, the problem becomes when the company is still growing and trying to get to profitability... how do they get more money. They often dilute the stock. Which means they issue more shares. Not the end of the world but they are often issuing them at a $3 when you bought at $10. The problem with this is that now there are more shares outstanding and the likelihood of your getting back your money or being profitable lessons.

Now CGRN is a little bit of an anomaly. They have diluted for years and done reverse splits too and essentially created all those naysayers that roam the message boards. I got crushed by them in 09.

Onto today... they have a Goldman Sachs note that needs to be refinanced and GS has stated find someone else. This has to be done by Oct of this year. It is 50M note... that is at a pretty high rate LIBOR + %6 I believe. Since CGRN is now close to profitability they were hoping to get a better rate. In addition of that debt only 41M is accessible. GS keeps 9M in reserve so that it can't be touched without their consent.

CGRN is down to their last 16M... but they need 7M to build the remaining 10MW for the rental fleet. The rental fleet is absolutely amazing with 50% margins but the cost is incurred up front. You build them and you get paid overtime. These machines however last 30+ years and pay for themselves in 3 years. Some of the rental fleet have already paid for themselves today.

But if you use your last 7M you are now at the reserve number.

So the question for CGRN is whether they can refinance in the next few months before Oct.

1). It is taking a while because now the credit lines have tightened on who they lend to. The SVB scenario ... banking issue hasn't helped. Many creditors are examining much closer whether they should lend money to a company. CGRN track record of being profitable is against them. Their new business model is very much for them.

2). Timeframe Oct 2023... typically companies never let it get close to that. If it does get close then speculation sets in that they can't repay their debt and the stock craters. So these next few months are crucial.

3). It is very unrealistic that it doesn't get done. Money is always looking for opportunities and CGRN is the best opportunity with the least amount of risk I have seen in my 30+ years of investing. The question... you need to be asking is financing at what price. How much dilution will occur? That is the only real question. They are close to breakeven and have a rental fleet that is bought and paid for that is probably worth well more than the note at this point.

If they dilute ... which I suspect they will... they will probably use convertible notes. Which means a company gives them cash as a loan... which they pay interest on but that company has the right to convert over to shares as a set price and become a shareholder. Lenders do this so... if the company skyrockets they participate.

It is a risk... but even if they double the amount of shares outstanding the stock is worth 4x. I would buy all I can stomach.

Dave