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Non-Tech : The Children's Beverage Group (TCBG)
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To: LemonHead who wrote (428)7/3/1998 7:51:00 AM
From: Stephen Goldfarb  Read Replies (3) of 2452
 
Keith:

One of the unresolved questions is the cost of the Volpak machines, and the effect of their purchase/lease/installation on earnings. These machines must be mostly handbuilt. They are shipped from Spain. Their installation requires ample space, power, water, etc. They may be installed in "clean room" environments.

There are typically large costs associated with a start-up operation. We do not presently know how much cash the company has to fund these costs, whether they expect to release more shares as a funding mechanism, or how much expense, if any, will be born by the joint venturing partner. If the company believes it can fund the machines and their installation out of current revenues, then shareholders ought to be able to see how this is expensed.

Steve
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