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Yes I'm assuming that will just stay on the books for the foreseeable future or until the company is able to pay that back. Main thing it's not a toxic CD :).
Which is a good thing. Take care of the CDs first priority.
$3,971,892.30 was used to refinance current debt, along with adding additional collateral for the new lender
To me, that's means taking care of the notes payable.
Regarding the notes coming due, I firmly believe that's what the approximate $4 million portion of the SBA is for. To refinance debt as stated in the 8k, in which GNPT's case consist mainly of notes payable whether it be short term or long term. Even if there is a penalty or extra cost for paying them off early, I believe it's still less expensive than paying very high interest rates on them. Paying approximately 6.25% versus 10% - 20% at least. He stated in the 8k it will reduce the rate of debt service by approximately 75%.
We have to remember Asif has been in the business for 15 years, and has reinvented and diversified GNPT from just steel (since it was in the dumps) to other forms of recycling. Steel prices will come back and that will add to the value of the business. In addition, he added $2.5 million worth of his own assets to the books to secure the loan. That will increase assets by $2.5 million on the books.
I can't recall another CEO willing to risk his own assets to secure a legit, toxic-free loan for a 25 year period. Also, the fact the TA is not gagged shows he's not trying to hide anything unlike 95% of the other OTC stocks out there.
Hmm, positive equity, positive net income, and a government backed SBA loan. Try to find other OTC companies that have that combination.
Agree completely. I know a lot of people would disagree, but more times than not there is a reason why TD or Scottrade won't allow some of these "junk" stocks.
Wow, you bring a wealth of knowledge. Just stop.
Exactly my thought. That was the whole purpose of the SBA loan and refinancing.
Regarding the notes coming due, I thought that's what the approximate $4 million portion of the SBA loan is for. To refinance debt which consist mainly of notes payable. I'm guessing the remaining notes will get paid off before they come due and convert. Plus they have much higher interest rates.
Regarding the $2.5 million in assets being transferred over in order to obtain the SBA loan - in my opinion, that would have to be recorded on the books increasing assets by that much but WITHOUT recording a liability. Otherwise, the bank wouldn't be able to go after those assets if they were already pledged to asif, acting as a liability.
Just stop. You didn't sell at .0016 and didn't buy at .0007.
Highly unlikely.
I'm thinking about smacking the .0009s as I think it's highly undervalued at the moment.
Either way, oversold territory and undervalued.
Thanks. That's what I was thinking, that it was at least 3.5 billion OS.
Is it approximately 2.5, 3 or 3.5 billion? Thanks in advance
Does anybody have an idea of what OS amount is approximately?
Does anybody know if there were t-trades today? It does appear the selling has started to let up at the moment.
On January 7, 2016, as a prerequisite to the $5,000,000 refinance package, Green Parts International, Inc. President Asif Balagamwala transferred to the company from his personal holdings, two properties with an appraised value of more than $2,500,000. By doing so the company was able to enter a 25-year term rather than a 10-year term on the loan.
On January 7, 2016, Green Parts International, Inc. completed a $5,000,000 refinance package at Prime plus 2.75%. The package reduced the company's debt (principle and interest) expense by approximately 75%. The loan proceeds also resolved all pending creditor litigations and various short-term loan obligations were paid.
The big question becomes what do we "top out" at when this last CD is done converting. I'm guessing 600 - 650 million max. Who knows, it could be about finished. That still isn't that bad for OTC land. A lot of OTC companies have billions in outstanding shares. That is why the $5 million SBA loan was obtained, to refinance debt and give more working capital. The only reason I see a need for further dilution is for obtaining the recycling company when it was stated a combination of cash and shares would be used. I'm guessing the shares will either be preferred or restricted for AT LEAST a year.
My apologies about the receivables. The fact is though is simple accounting: assets are higher than the liabilities, therefore they have positive equity. Also, positive net income. Also, a toxic free SBA loan.
Find other OTC plays that have that combination.
I don't have time to review the notes in detail. We received a 13G saying that one of the notes got paid off. I believe somebody on here stated there was one more outstanding note but wanted to confirm? This last outstanding note could be the one causing the decline in PPS. If it would just be done converting then we shouldn't have to stoop to toxic financing again with a nice $5 million loan from the bank in which we can use approximately a $1.5 million for operating capital.
Keep in mind this company posted a profit last quarter. The only issue they had was not collecting on their accounts receivable right away. If they can get that in order, they should be able to sustain business and keep operating without having to take on anymore loans. Especially if they can close this acquisition deal.
Keep in mind, they might have posted a loss for the next quarter, but after that, they should be in the clear as metal prices start to increase again and they add other lines of business. Thoughts?
Today had a good finish. A lot of support at .0007s and .0008s almost wiped out. Let's hope tomorrow picks up where today left off. There has to be a bounce at some point.
I get the frustration. He needs to release a PR talking about the CDs left and share structure. I thought that was what caused the major decline in pps in November was CDs being diluted. How much more can possibly be left. It's not like they issued any new ones recently. Also I thought a portion of the $5 million SBA loan was going to be used to payoff and refinance debt. Unless that didn't pertain to the CDs that are currently being converted and sold.
I believe it was a combination of both. There were a lot of people on this board admitting they sold yesterday.
Even if we are at 500 million OS * .0005 = $400k market cap.
Seems extremely low.
5's or 6's that never printed. Who's side are you on? .0008 is looking very thin at the moment.
Keep in mind people we now have a market cap of $350k based on 500 million OS. They have positive equity and positive net income last Q report, not to mention over 8 million in assets.
Nope, the transaction has not yet occurred. It will probably be preferred or restricted shares issued for the purchase, in addition to cash.
While that's nice what he said, we still need an official PR to address the current outstanding CDs and share structure going forward. In my opinion it has to be about complete.
Either way, this appears highly undervalued down here with an extremely low market cap considering their financials. I'm expecting a big bounce either today or tomorrow.
Sorry to butt in. I think he was referring to new notes being issued. There were no new notes issued. Keep in mind notes were being converted I believe what caused the major decreases in pps from pennies to where we are now. There is obviously some still left. But some of those were being converted at higher prices like .0017 so not as many shares would be required to pay them off. Also, I'm still confused on if any of the SBA loan money was going to be used to pay a portion of them off early. We need clarification from management.
I don't believe we have any new notes. I'm not sure if you're math is entirely accurate. Correct me if I'm wrong anybody?
Once again it all depends on how much is left with the CDs. He can't just keep issuing shares himself. It would require an 8k with any amount 5% or greater of the last reported share structure amount. I believe it was around 400 million or so (I'm talking an 8k or 10Q, not from the TA). That would mean only approximately 20 million shares could be issued into the OS without an 8k not counting the CDs.
There are so many OTC stocks out there that have share structures over 600 million. That is nothing in OTC land. And a lot of them don't have any revenue or positive equity.
The fact GNPT was able to obtain a $5 million SBA loan still says something about the company. I can't find any other OTC stocks that are able to obtain a legit, toxic-free loan.
I am disappointed in the past couple of days how this has really fallen. We need an update regarding the CDs and debt in general. That's key.
Probably a combination of panic selling and dilution today. Will somebody please contact the TA to see what the updated OS is. Tomorrow morning perhaps. The market cap is now under $500k. They have $8 million in assets per the last Q report and positive equity. This seems extremely low right now but I"m beginning to wonder. How many more shares are left from the CD's.
FYI - its 5% by the way based on the share structure of the last filing. Still think it's leftover CDs being finished up.
The amounts of shares being sold at .0011 today and the accumulation the past three weeks or so, these CDs have to be near complete. My gosh.
What about the largest portion being used refinance current debt. Maybe current debt doesn't include previous CDs issued I'm not sure. Once again, further clarification would help.
I was kind of wondering about that myself. I believe as you stated they can be paid off early before they decide to convert. I thought that was what a portion of the SBA loan was going to be used for. We need some further clarification from the CEO.
Agreed, the majority of the loan is used to refinance the debt. We just need some communication from management on the current CD situation. This is definitely a good buying opportunity down here. There are many OTC companies with zero in revenues that have market caps in the millions.
With the updated share structure we have a current Mk of $624k. Insanely low.
I agree. With the new SBA loan obtained, the only dilution occurring right now is the leftover CDs. Besides, an 8k would be required to get filed for any shares over 5% of the current share structure.
That doesn't surprise me. I knew there must be some slight dilution still occurring otherwise this would've in the .003s or .004s by now. There can't be much left. This is still a very low share structure for OTC land.