When a company tries to become more valuable for its shareholders, it seeks funding in order to expand its operations. A good instrument for raising capital in the current low interest rate environment is most obviously debt. Not only does it provide the company with additional capital, but it also benefits the company through the added benefit of tax-deductible interest payments. However, debt holders have recently become flexible with their checkbooks and in the case of the following companies, not a lot of collateral is in place to secure this debt in case of a downturn.
Zaio Corp. (TSXV: ZAO) – $0.26
IT Services & Consulting
Zaio Corporation (Zaio) is a Canada-based company, engaged in developing a secure database. Zaio owns and develops a secure database for residential housing appraisal research of metropolitan areas throughout the United States, completed by appraisers utilizing Zaio’s tools and processes. Zaio’s research is combined with property information and comparable sales history of residential property in metropolitan areas.
- Market Cap: $39,968,926
- Total Debt: $5,854,050
- Total Debt/Total Assets: 458.2%
Clearford Water Systems Inc. (TSXV: CLI) – $0.34
Environmental Services & Equipment
Clearford Industries Inc. is a Canada-based provider of unified water management and sanitation systems. The Company’s proprietary technology Clearford One sanitation system is the basis of the full Clearford Water Systems offering. Clearford One enables installation and integration of all other water systems, including stormwater management, fire suppression, and water distribution and redistribution. This technology makes it possible to provide a set of services including system design, installation, financing and operation.
- Market Cap: $25,654,047
- Total Debt: $10,143,970
- Total Debt/Total Assets: 236.1%
Resverlogix Corp. (TSX: RVX) – $2.11
Biotechnology & Medical Research
Resverlogix Corp. is a Canada-based clinical stage biotechnology company. The Company is engaged in developing compounds involving ApoA-I production. Resverlogix’s RVX-208 is a molecule, developed for the treatment of clinical conditions, including atherosclerosis, Diabetes Mellitus and Alzheimer’s disease. RVX-208 is the first bromodomain and extra terminal domain (BET) inhibitor in clinical trials. New compounds arising from Company’s epigenetic drug development platform function by inhibiting BET bromodomains and have the potential to impact multiple diseases, including neurodegenerative diseases and diabetes mellitus.
- Market Cap: $179,332,977
- Total Debt: $52,529,072
- Total Debt/Total Assets: 194.1%
Noront Resources Ltd. (TSXV: NOT) – $0.47
Diversified Mining
Noront Resources Ltd., a Canada-based company, is engaged in the development, exploration and acquisition of properties prospective in base and precious metals, including nickel, copper, platinum group elements (PGEs), chromite, iron, titanium, vanadium, gold and silver. The Company is focused on the development of its 100% owned Eagle’s Nest deposit, a nickel, copper, platinum and palladium deposit located in the James Bay Lowlands of Ontario (the Eagle’s Nest Project), within a geological feature commonly referred to as the Ring of Fire.
- Market Cap: $106,917,259
- Total Debt: $16,788,200
- Total Debt/Total Assets: 190.4%
Gold Reserve Inc. (TSXV: GRZ) – $4.60
Gold
Gold Reserve Inc. (Gold Reserve) is an exploration-stage company that is engaged in the business of acquiring, exploring and developing mining projects. The Company’s projects include Brisas Project and La Tortuga property. Brisas Project is located in the historic Km 88 mining district of the State of Bolivar in southeastern Venezuela. The Brisas deposit contains ore reserves of 10.2 million ounces of gold and 1.4 billion pounds of copper. La Tortuga property, which is located in Jalisco State, Mexico. The La Tortuga Property is a copper and gold prospect, which is an 11,562 hectare property, including iron oxide copper gold deposits, copper porphyries and epithermal gold and base metal veining.
- Market Cap: $347,079,813
- Total Debt: $37,351,815
- Total Debt/Total Assets: 119.3%
