Details of TAVA's "loan-shark" agreement
This is copied exactly from the last 10-Q...
<<During the third quarter of the current fiscal year, the Company obtained a $4,000,000 loan from an investment company. The loan is secured by substantially all assets of the Company. The loan bears interest at the rate of 11.5% per annum. The loan is due in February 2003. No principal payments are required until maturity. The Company granted the lender stock purchase warrants to purchase 155,000 shares of its common stock for $6.25 per share. The warrants expire in February 2003. Under the terms of this facility, additional warrants may be granted if the outstanding principal is not repaid prior to either December 1998 and July 1999. Proceeds were used to extinguish senior bank debt and for working capital purposes associated with Y2KOne-TM-development and market implementation.>>
With over 23,000,000 fully-diluted shares outstanding, TAVA shareholders are paying over $200 million for a company with lousy revenue growth, net losses, and a negative cash flow. However, the company PLEDGED 100% OF ITS ASSETS FOR ONLY $4,000,000!!! Despite all the Y2K bullshit bandied about, these facts are easily culled from the publicly available SEC documents.
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