PMAT appears to be already positioned for the $300,000,000 revenue run rate using your assumptions on the price that the Convert Buyers took and my analysis which is as follows:
I am going to take your 30% assumption for granted, therefore the company needs to have $90,000,000 in working capital for $300,000,000 run rate.
In the six month pro forma numbers from pg. 13 of the Proxy Statement, the company has $50,00,000 in working capital.
So under your scenario the company needs another $40,000,000 in working Capital to get to $300,000,000 in revenue.
If I am looking at this correctly -- PMAT should already have this in place from the following:
* A new $35,000,000 pro forma revolving working capital credit line that is a prerequisite to the completion of the acquisition.
* The convert was $75,000,000, not $65,000,000 as the Company anticipated, thus $10,000,000 in their pocket.
So, if my crude assessment is correct with your assumptions -- then PMAT is already positioned for the $300,000,000 revenue run rate you were assuming based on the price that the Convert Buyers took.
Just in case, I will ask PMAT's finance to comment on this to make sure we are looking at this correctly. |
