Continued financial troubles, new leadership for Glenwood Springs rock quarry owner RMI
Dangler retires, Brian Fallin new company CEO
A new year brings another round of corporate leadership changes for the mining company that proposes to greatly expand a controversial limestone quarry near Glenwood Springs.
According to Rocky Mountain Industrials, Inc.’s Monday filing with the U.S. Securities and Exchange Commission (SEC), Gregory Dangler is out as the company’s chief executive officer, having retired effective Jan. 1.
His replacement is Brian Fallin, who until recently has been vice president of sales for the company.
Dangler continues on as executive board director and remains an employee of the company, according to the report.
The filing notes that John Anderson has also resigned as president of RMI.
“The role of president will not be replaced at this time,” the company said in the latest SEC filing.
In addition, Andrew Peltz has stepped down from his position as board director, but continues as a shareholder. Adrian Fairbourn takes Peltz’s place on the board.
What is supposed to be a quarterly report of the company’s financial status and executive changes addresses the recent personnel moves, but only deals with financial information through Dec. 31, 2019.
As was the case last year, RMI is almost a year behind in its SEC filings. The company had a major executive change at the beginning of 2020, as well, when Chad Brownstein resigned his position as CEO, replaced by Dangler.
RMI currently operates the former Mid-Continent limestone quarry off Transfer Trail, about a mile north of Glenwood Springs. It seeks approval from the U.S. Bureau of Land Management to expand the existing quarry site from 15.7 acres to 447 acres, which is subject to an ongoing Environmental Impact Statement.
The quarry expansion is opposed by the Glenwood Springs Citizens Alliance, as well as the city of Glenwood Springs and other area municipalities. Garfield County, which has some permit oversight of the operation, is currently locked in a legal battle with RMI over recent permit enforcement actions by the county.
Meanwhile, the company continues to operate on unstable financial footing, according to the most recent SEC filing.
Since the company’s inception in October 2014, it has incurred net losses totaling more than $44.2 million, as of the end of 2019.
“We anticipate incurring additional losses before realizing any revenues, and will depend on additional financing in order to meet our continuing obligations and ultimately to attain profitability,” the company notes in its Jan. 4 filing. “Our ability to obtain additional financing, whether through the issuance of additional equity or through the assumption of debt, is uncertain.”
As of the end of 2019, the company had assets of just under $1.2 million, with total liabilities of more than $5.5 million.
“We will be seeking additional capital to execute our business plan and reach positive cash flow from operations,” RMI finance representatives also state in the filing, noting the company has base monthly expenses of about $200,000.
“We do not generate adequate cash flows to support our existing operations,” the company discloses. “Moreover, the historical and existing capital structure is not adequate to fund our planned growth. We anticipate generating losses at least through the 2020 fiscal year.”
RMI also explains the lag in keeping up with its SEC filings, saying the financial situation has prevented the company from having sufficient accounting personnel to complete the financial reporting.
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