I just read your post...I have heard through the grapevine that Quick Tent intends to settle amicably with GEM Advisors ASAP...and frankly I think the company is doing everything they can to make GEM happy...
Actions speak louder than words...the company put out the following news today...looks to me like a smart way to do business...the company no longer needs to raise money to fill orders...I like to think of it as buying a house without any of your own money! Your post didn't put David Taylor in a very good light..but I think this is a brilliant move!
Quick Tent Inc. receives "open" Letter of Credit to finance contract-manufacture of its ten-second tents offshore
SALT LAKE CITY, September 21, 1998 -- Quick Tent Inc. (OTC BB: "QTNT"), an emerging company, announced today that it has received an "open" Letter of Credit from Credit Capital Consultants. Under the terms of the agreement, Credit Capital Consultants, based in Millbrae, California, will provide immediate financing to Quick Tent for the purpose of fulfilling incoming purchase orders in a timely fashion.
"This Letter of Credit is the second significant milestone for Quick Tent within a week," said David L. Taylor, President and Chief Executive Officer. "It gives us immediate and ongoing access to inexpensive cash in order to finance the high-volume production of our ten-second tents by an offshore contract-manufacturer, so that we can begin filling the initial purchase orders we already have for our product," Taylor explained. "The agreement stipulates that, once we receive a firm purchase order from an established customer, Credit Capital Consultants will then immediately underwrite the cost of manufacturing enough tents to fill the particular purchase order. Consequently, this resource precludes us from having to wait and raise a considerable amount of capital in order to commence manufacturing. In short, we can conserve the ample cash we have on hand, while we begin generating cash from sales of our ten-second tents. Certainly, this Letter of Credit fortifies our expectation of being in the marketplace within 90 to 120 days," Taylor concluded.
The Letter of Credit is the second significant milestone for the Company announced this month. Recently, Quick Tent Inc. announced today that it has received a cash infusion totaling $230,000 from two sources: New York City-based GEM Advisors Inc., and Toronto-based Thomson Kernaghan Co. Ltd.
The Company's initial product, "Quick Tent'", is a patented two-person tent designed to be set up in just ten seconds, as opposed to other, more-expensive tents that may require ten to twenty minutes or more to assemble and set up. Additionally, "Quick Tent'" can be taken down, folded and put away in only one minute or less. The Company believes that its light-weight, user-friendly tent will compete successfully in its initial targeted segment: the 15 million "small" tents sold annually in the United States, a $1 billion industry. To see a demo, visit Quick Tent's web site at www. quicktent.net.
Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's report on Form 10-Q for the quarter ended June 30, 1998. Copies of this document may be obtained by contacting the Company or the SEC.
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