Here are a few excerpts from the recent 10Q, which explain the incentive to get the pps to 10 cents:
Additional capital must be raised to fund existing and new projects, support overhead expenses and execute project work identified. During the next 12 months, the Company's foreseeable cash requirements are approximately $5,000,000 to implement its business plan in the environmental cleanup business. The Company will most likely need to issue additional common or preferred stock, which will have a dilutive effect on current shareholders, in order to raise the necessary capital to continue and expand its operations and incur debt in the form of guaranteed lines of credit backed by issuance of common and preferred stock...
The Company has obtained financing in the form of equity in order to provide the necessary working capital. On June 10, 2004, we entered into a Common Stock Purchase Agreement with Fusion Capital Fund II, LLC ("Fusion") a Chicago-based institutional investor. Under terms of the agreement, Fusion has agreed to purchase from the company up to $6.0 million of our common stock over a 24-month period. Since the Securities & Exchange Commission declared effective a registration statement covering the securities issued or issuable to Fusion on November 9, 2004, each month the company has the right to sell to Fusion up to $250,000 of its common stock at a purchase price based upon the market price of the company's common stock on the date of each sale without any fixed discount to the market price. The company's may also require Fusion to purchase lesser or greater amounts of its common stock each month up to $6.0 million in the aggregate. The company has the right to control the timing and the amount of stock sold to Fusion Capital. The Company has the right to terminate the agreement at any time without any additional cost. The Company also has the right, at its election to enter into a new agreement with Fusion Capital under which Fusion would be required to purchase up to an additional $6.0 million of the Company's common stock on the same terms and conditions as the original agreement...
A limiting factor on the Company's ability to sell shares of common stock to Fusion Capital is that there is a floor price of $0.10 per share. Until the market price of the Company's common stock is at or above $0.10 it will not be able to sell its common stock to Fusion Capital.
SSWM is going to do everything it can to get the pps to 10 cents. I think they will achieve that, but there will likely be some dilution on the way up. The company needs working capital, simple as that. However, in the end, their revenues are going to skyrocket, so I'm not too worried about it. Could explain why the pps has been held down so long.
One excellent PR, and everything changes rather quickly here.
Rhino
