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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (15940)	5/17/2001 12:10:15 PM
From: N/E PATSFAN	Read Replies (1) \| Respond to of 30051

[GGNS] Private placement to close soon ... biz.yahoo.com biz.yahoo.com >> Our primary source of funds at March 31, 2001 consisted of $3.1 million in cash and cash equivalents, and $5.0 million of accounts receivable, most of which we expect to collect or to have been collected during 2001. On March 28, 2001, we converted our existing $10 million Venture Bank line of credit to an asset-based line of credit. Amounts available under the line are based on 80% of eligible accounts receivable, and borrowings under the line are secured by all corporate assets and bear interest at 9.6% per annum and an administrative fee of a quarter of one percent on all advances. This line does not have accounts receivable customer concentration limitations, does allow borrowing against foreign receivables, and has no financial covenants. It will expire in March, 2002. On April 9, 2001, we announced plans for a private placement of common stock to raise additional working capital, strengthen our cash position and meet our growth expectations for 2001. We expect to close this deal by the end of May, 2001. The terms of the private placement will be announced in a company press release at the time of the closing. We believe that our existing working capital and our $10 million line of credit will be sufficient to satisfy our cash needs for the next 12 months. There can be no assurance that any required additional funding, if needed, will be available on terms attractive to us, which could have a material adverse affect on our business, financial condition and results of operations. Any additional equity financing may be dilutive to shareholders, and any additional debt financing, if available, may involve restrictive covenants. <<