Will do Sheri. Good question, would also be interested in knowing how demo was received.
However, in looking more at financials & 10-K, the substantial balances owed to Lenfest is disturbing, considering his age at 67. Hell, just about the whole right side of the ledger is Lenfest! (although I understand there would be no TEVE w/o him)
My point is, yeah, they have a moratorium agreement w/ him thru 1/99, but you would think it's time for him to start recouping his investment. If he were younger this wouldn't concern me as much.
First concern is he could dilute the hell out of this co. thru the PS or the warrants in the near term although that wouldn't make sense for him to go that route until his post-diluted share value was at least equal to loans & int balances at that time of conversion or exercise. Could also redeem PS @ $2/share instead (whew! logically eased that concern quickly).
Second concern is, being that happenings of first concern is hopefully improbable, the co. will soon have to step up payments on debt service & probably start redeeming the PS for cash and it is unlikely (again because of his age) Lenfest will lend anymore moola. A good question would be: does this co. need to incur any further substantial capital investments in order to increase revenues & profits vis-a-vis web-ordering or any other new marketing and technological implementations? And if so, how can they raise it? Certainly not thru profits, it'll all be going to Lenfest (deservedly so). We've now come full circle.
The best scenario is that TEVE has all it needs now related to resources and just needs to sell, generate substantial increased revenues & profits, pay down Lenfest w/o dilution, and develop a positive book value (keep in mind, we are dealing with a co. technically "broke" by $5M; $8.5M if they agree to redeem PS in cash).
IMO, the above scenario is the one and only one that makes this co. a winner. Does anyone agree or am I full of it? |
