VALENCE TECHNOLOGY (VLNC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : VALENCE TECHNOLOGY (VLNC)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: add who wrote (8379)	2/15/1999 4:58:00 PM
From: Larry Brubaker	Read Replies (4) of 27311

add, the line of credit was there in December also. But the restrictions on its use (an OEM must certify in writing that the product meets specifications, and a purchase order must be secured) apparently remain in place. While the line was in place, it was unused while VLNC almost ran completely out of money, and while another variable rate financing deal was signed. One of the most puzzling questions I have is if Berg were so anxious to keep sinking money into VLNC, why did he allow, twice, VLNC to risk substantial dilution to his existing investment through the sale of variable rate securities? If by December, success was so certain, why did Berg not release the $7.5 million from the line of credit to tide them over until they could secure more conventional financing? One viewpoint is Berg put those terms and conditions on the $7.5 million so that he is not obligated to throw more money in unless a contract and cash flow is assured. That the money hasn't been released leads one to question whether Berg is as confident as many of the posters on this thread appear to be.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next