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UrtheCast’s annual losses hit $32m as financial troubles mount

Company says it cannot guarantee it has enough money to cover its commitments for the next 12 months
An image of Vancouver and the North Shore as taken by one of UrtheCast’s cameras | UrtheCast

Vancouver-based UrtheCast (TSX:UR) is known for its heavenly high-def imagery of the Earth but its latest financial results reveal a less than stellar outlook.

Financials released April 3 reveal revenue has plummeted from C$111.3 million in the 2016 fiscal year to C$40.4 million in 2017.

Meanwhile, net losses have grown from C$29.3 million a year ago to C$31.8 million by the end of the 2017 fiscal year.

The plunge in revenue stemmed from changes and delays to various contracts, according to a statement from the company.

UrtheCast added that based on its forecasted cash flows for the next 12 months that it couldn’t guarantee its current cash flow from operations would be sufficient enough to cover its commitments, obligations and operating costs.

The company, best known for its partnership with the International Space Station, is attempting to obtain a US$142 million loan from a group of lenders.

But it acknowledged it could not provide any assurances it would be able to complete the financing arrangement.

Last month former CEO Wade Larson resigned from his position and vacated his boardroom seat as the company sought a financing deal.

Board director Greg Nordal has been serving as interim CEO since Larson’s departure.

The company had previously announced it would release its financial results at the close of markets on April 2 and facilitate a conference call with investors that same day.

The company cancelled those plans shortly before the scheduled call, instead releasing the financial results later in the day on Sedar, Canada’s system for filing securities information online.

UrtheCast then announced its financial results shortly after midnight the following day.

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