so you don't already have the $3+ million required to refurbish the cars but they're already going to Pittston Yards for that purpose? You now speak of a $70,000 estimate to refurbish the cars, not a contracted price to do it. Is there no contract because you don't have the $3.2 million (50% of the loan-to-value based on the appraisal of their highest and best use in Las Vegas)?
Realistically speaking, Larry, what bank or private lender will issue a 50% LTV loan of $3million based on cars having a present value of $14,000 each (aggregate $560,000) that may or may not be refurbished and may or may not be put into the planned service which depends on so many "ifs" coming together (UP approving, casinos contracting, acquiring sites and building the stations in the various locations, SNCG getting various regulatory licenses to operate the trains, etc.)?
Elsewhere you say that the cars are already being refurbished or in fact that several have been refurbished to reflect their "glory days of railroading" condition.
Are they being refurbished now or are they awaiting financing to do so at the estimated price?
Were they removed because the Market Street Square location is being taken over for development and they had to get out of there?
How did Primm Valley buy the cars? With what resources? How much did Primm Valley pay for them ($14,000 each or less, per the appraisal below?) or does Primm only have an option to buy the cars if it can raise the money? Your press release indicates that Primm Valley purchased the selected assets including the cars.
And in transferring the cars to Sinclare how much stock, at what valuation, did Sinclare give you and your minority partner for Primm Valley? You have already "vended" Primm's assets to Sinclare per your own words. If you have received no shares of SNCG what did you get for "vending" those millions in assets to Sinclare?
You will issue stock in Sinclare equal to $3.2 million to cover the loan for the refurbishment, right? Who is the buyer of the stock and at what price per share, or is it correct that a buyer has yet to be located? Or is it the case that the not-yet-located lender who'll fund the $3million plus cost of refurbishment will be expected to take stock in lieu of repayment?
Many questions...
Dee Jay
from the press release on the appraisal:
FAIR MARKET VALUE IN CONTINUED USE:
As - is, where - is in Wilkes-Barre, PA each $ 14,000 (40 = $560,000)
Upon refurbishment and relocation to Las Vegas, NV each $ 160,000 |
