I just talked to Rob Gordon to confirm our appointment. We moved it to Wed morning so he would be able to share additional information with me. This is what we spoke of during the 5 minute call.
There is about $200,000 or less to convert yet. I don't think it is filed for yet. The $200,000 and maybe another $100,000 they may have to take will be all that is used. The total taken from the first PP would then be a total of about $3m or less.
The filing done yesterday will be canceled if the funding arrangement being finalized comes to pass. The $2-300,000 would have to come out of it. He hopes to have the new funding done next week. He says we all will be surprised that as good a deal was struck under these circumstances. The deal should be fully disclosed in the PR.
The burn rate is now about $350,000/mo.
The closing of the acquisition of Signature by GE Capitol happens today. That takes their mind off that. Their relationship with TSIG is still good. The Signature teleservices deal is off until about Sept while the bank gets it together. Something else good is up.
He wouldn't tell me the number but the interest level from the schools is way up. Throw out the 3,000 school number we have heard about so far.
The first mailing of 175,000 manuals was made to 102,000 heads of PTAs and 70,000 music dept heads. A second mailing in about 2 weeks of about 280,000 pieces (letter and brocure) will include the principals. About 2 weeks later the principals get mailed again.
The outbound marketing approach is attempting to contact 50,000 of the 70,000 music depts between now and the end of Sept.
The average school raises about $8,000 according to what RG found out.
There are 152,000 4-H heads. They each will get 2 mailings between now and the 2nd week of Sept. Then they will get a monthly mailing. These members are more fully active in participating for their organization so the results should be very good.
Bob
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