Yamakita, thank you for your reply regarding the sentence I had questions about. You were correct; I did copy the wrong paragraph for the context. I hope you will bare with me longer on this subject, as I want to make sure you had enough information to make a valid judgement.
First, the paragraph I first quoted you was the from the pre-amended SEC document. Much later in the year, they provided an amended SEC document which read (this is the paragraph I should have quoted, although I'm glad you have both version as having both versions may alter your judgement):
<<The Company believes that existing cash and cash equivalents, cash flow from operations, and cash raised through private placements of securities will be sufficient to meet the Company's presently anticipated working capital needs for at least the next 13 months. The Company regularly evaluates various potential acquisitions, which could require a substantial portion of the net proceeds from any exercise of the warrants. To the extent the Company uses its cash resources for acquisitions, the Company may be required to obtain additional funds, if available, through borrowings or equity financings. There can be no assurance that such capital will be available on acceptable terms. If the Company is unable to obtain sufficient financing, it may be unable to fully implement its growth strategy.>>
Again, the paragraph just quoted was the amended version from which I took the sentence in question. As you may have noticed, the sentence now seems to use the past tense. However, this is a sneaky company, IMO, so I'm still trying to determine if the term "cash raised" must be construed as being past tense. The change in wording of the first version of the SEC document to the amended version does seem to indicate that private placement took place between the two versions, but I am not sure that is how you have to interpret it.
I liked your change to the example I gave, although I changed the word "money" to "cash" to agree more fully with the original sentence.
Again, in this sentence, could the term "cash raised" be interpreted as the cash to be raised, with "to be" being understood but not written? Again, is this statement still somewhat ambiguous?
<<We believe the cash raised through the financing of our German chocolate cake division will be sufficient to meet our future expenses.>>
What we are trying to determine is whether or not the company is likely to have another private placement. As I said, I have suggested that the wording of the term "money raised" did not have to be past tense.
To give further context to the sentence in question, I would refer you to this paragrah which seems to show that private placements are not only past (they had them before), but that they are likely to be in the future.
<<NEED FOR ADDITIONAL CAPITAL
The proceeds of this offering will be received by the Selling Shareholders. While the Company may receive cash from the exercise of warrants held by certain Selling Shareholders, there can be no assurance that the Company will derive any specific amount of proceeds from this offering. Developments in the Company's
business and possible expansion into other markets could indicate that the Company should expand its business at a faster rate than that currently planned for. Moreover, there can be no assurance that the Company will not encounter unforeseen difficulties that may deplete its capital resources more rapidly than anticipated, which would require that the Company seek additional funds through equity, debt or other external financing. In any event, it is likely that the Company will attempt to raise additional capital [i.e private placments] to meet its obligations and to accelerate its growth. There can be no assurance that any additional capital resources which the Company may need will be available to the Company if and when required, or on terms that will be acceptable to the Company. If additional financing is required, or desired, the Company may be required to forgo a substantial interest in its future revenues or dilute the equity interests of existing shareholders, and a change in control of the Company may result. The Company believes that existing cash and cash equivalents, cash flow from operations, and cash raised through private placements of securities will be
sufficient to meet the Company's presently anticipated working capital needs for at least the next 13 months.>>
Again, thank you for your insights in to the meaning of this sentence.
For your convenience:
My first inquiry-
Message 6132905
Your first response:
Message 6133361
VALUESPEC |
