JDN, TPRO's comments were framed within the context of keeping up with continued and accelerated revenue growth. They need the capital to keep up with the growth. Their other option is to go into further debt. Notice, that they would rather get the capital from equity funding. In the past the capital received was from debt conversion and warrants. TPRO seems to have taken the position to use 50 % for the elimination of interest bearing debt and the other 50% towards capital to fuel their revenue growth.
In the past, TPRO has mentioned that their steps were to strengthen their books. And that they have. The excersise of those 3,700,000 options will, by force, not take place till well after the CD is released. In addition, it will probably precede TPRO's third quarter. This is significant, since by the second quarter (Now!) we will have a very good picture of the Y2K Plant Floor momentum. By then, we can also expect wide spread coverage of TPRO by the general investment community.
In summary, these options will coincide with greater investor interest. TPRO's ledger will contain significantly less debt. TPRO's credit rating will greatly improve, allowing even further growth. TPRO's revenue will have increased significantly enough to handle the added equity issues.
All these signs are the signs of a solid, fast growing company.
What do you think?
Jack |
