Have done a cursory look at the $50,000,000 news:
From January 1996 annual report filing of ESVS:
LIQUIDITY AND CAPITAL RESOURCES
At November 30, 1996, the Company had stockholders' equity totaling $1,722,857 as compared to $2,524,708 at November 30, 1995, a decrease of $801,851. This decrease resulted from a net loss of $1,070,064, the issuance of 1,940 shares of stock valued at $1,213, the exercise of
89,000(post-split) warrants for a cash consideration of $143,100 and a discount on warrants granted of $123,900 during the twelve month period ended November 30, 1996.
The Company's working capital was $189,310 at November 30, 1996 as compared to $679,252 at November 30, 1995, a decrease of $489,942. This decrease was primarily the result of the net loss for the period
and the utilization of the Company's working capital loan.
The Company executed a working capital loan agreement in the amount of $500,000 on January 19, 1996 (amended as of June 1, 1996). The loan is due May 31, 1997 with interest paid monthly at 2% above the prime rate and is secured by accounts receivable and inventory. The Company
borrowed $500,000 as of November 30, 1996.
Any clarifications received as to how this deal is structured? |
