GRIN (Grand Toys International Inc) Message Board

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Non-Tech : GRIN (Grand Toys International Inc)

GRIN 27.01

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3:59 PM EST

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To: Frank McVerry who wrote (470)	11/24/1999 8:43:00 AM
From: Kevin Podsiadlik	Read Replies (1) of 495

SCENARIO(1) GRIN receives their $8M option exercise money in August and immediately buys a CD with it. SCENARIO(2) GRIN receives their $8M option money and uses this plus YTD net profit plus depreciation cash to buy their inventory. Very nice and well thought out. Except for the little detail that, well, we sort of know already what GRIN did with the $8M. SCENARIO(REALITY) GRIN receives their $8M option money and, instead of buying a CD with it, or buying inventory with it, instead takes the whole wad, plus another $38K from YTD profits, and hands it over to their bank in order to pay off their line of credit. The cash is no longer GRIN's, and therefore cannot count towards their year-end cash position, unless GRIN elects to borrow it back in Q4.

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