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To: Sir Auric Goldfinger who wrote (9507)	8/22/2000 12:47:10 PM
From: StockDung	Respond to of 10354

Titan Motorcycle Issues Going Concern Doubt Tuesday, August 22, 2000 11:23 AM WASHINGTON (Dow Jones)--Titan Motorcycle said there is substantial doubt as to its ability to continue as a going concern because of continued net losses, accumulated deficits, and the approaching maturity of its credit line. According to the company's quarterly report for the period ended July 1, filed late Monday with the Securities and Exchange Commission, Titan had incurred net losses of $3.2 million for the 26 weeks ended July 1. At the end of the quarter the company had cash balances of approximately $163,822 and an accumulated deficit of $13 million. Additionally, the company said that as of July 1, it had a $6 million outstanding balance on its credit line that matures on Sept. 10. Titan said it is pursuing various options to provide sufficient cash flow to continue operations. Options include negotiating a new line of credit, effecting private placement equity financing of $3 to $5 million, and reducing operating costs. As reported Titan is in technical default of the covenants of its loan agreement with Wells Fargo Credit Inc. However the company said in this most recent filing that it has reached a verbal agreement with Wells Fargo to amend the agreement to bring it into compliance and cure any prior default. Titan Raises $750,000 In Private Placements Titan said it has raised $750,000 in two separate private placements on Aug. 14, according to an 8-K filed late Monday with the Securities and Exchange Commission. The company sold to Esquire Trade & Finance $375,000 in principal amount of its 12% convertible debt and a warrant to purchase 512,580 shares of Titan's common stock. In the other placement, Titan sold to Celeste Trust Reg. $375,000 in principal amount of its 12% convertible debt and a warrant to purchase 512,580 shares of Titan's common stock. Unless shareholder approval is obtained, the debts are convertible into a maximum of 3.5 million shares of the company's common stock at the lower of a fixed or variable conversion price, according to the filing. Titan said the debt is collateralized against substantially all of its assets, subject to a senior security interest in favor of the holder of the company's credit line, Wells Fargo Credit Inc. Also the debt is redeemable at any time by the holders in the event of default by Titan. If Titan's common stock is suspended or delisted from trading on the Nasdaq/SmallCap Market for in excess of 20 trading days, that constitutes an event of default. As reported, Titan was notified by Nasdaq that it wasn't in compliance with Nasdaq's continued SmallCap Market criteria. As a result, it is unclear whether Nasdaq will take action to delist Titan's securities and, if so, what the timing of such an action would be. Titan said that if it is forced to redeem its debt at a time when it doesn't have sufficient funds, it may be forced into liquidation or reorganization under the federal bankruptcy laws. Titan Motorcycle, Phoenix, designs, makes and sells V-twin engine motorcycles. -Joanne McPike, Dow Jones Newswires/Federal Filings Business News; 202-628-7669 Quote for referenced ticker symbols: TMOT