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Why is it that they have 27 mill in cash but have such a low pps? They do have a lot of shares to deliver to holders but still. I don't understand. Anyone have thoughts on this?
As you all aware our notes come due in July and August, I mentioned that earlier, Phil and I have dedicated our efforts on working towards a solution of restructuring the debt and as I mentioned Bill will assist us especially because he has done this in the Denver area. We will look for some input from several sources and one of them will be people who have investment groups who have done this before
This new CFO could be huge for us. He is gonna find the money for us is my prayer. I'm sure they will find help I don't care if they get cheap warrants as long as they dilute responsibly and give us some confidence that they have funding for the next 2-3 yrs without being limited in spending for expansion
Sorry for being rude. I'm upset at being down 60 percent. It's so easy for this to be up around 45-70 cents without inflating the market cap. The debt has to be adjusted and moved back by a few more years. That is really what is making ppl afraid.
Why are you even a moderator that opinion? Thanks for the insight
Come on. You don't know the future. I recall You were a happy supporter when they went thru the RS and they were bankrupt at that time. Now it's doing better significantly and you seem to know they are bankrupt again? Cheer up. People on here are so bipolar. Only care about now the pps now and not the moves made for the future.
So even if they do give warrants at a low pps exercise price they will likely still have the limits of not holding more than 5 or 10 percent of the os.
If that's true then a low pps exercise price does not mean dilution will happen such that the pps goes way down. Don't you agree?
Well it looks like you are screwed then right? Might as well just sell as soon as you can at as little of a loss as you can
The debt majority is not due till late 2017 and 2018. Besides the loan coming due for 19 mill and interest the rest is over a year out to be paid.
Renegotiate the short debt and then the companies health is certainly very different. Wouldn't you agree? The 100 mill is not due that soon.
I'm not sure you are viewing it the balance sheet correctly. If you are including the interest of 3.3 then the net loss is less than 8mill (4.4 + 3.3....)
They are in a delicate situation and the answer as we all know is re structuring the loan payments and interest so that we can use the 3.3 in quarterly interest to fund expansion so revs increase.
Also they only used 5.3 mill of actual Cash. For the quarter. I don't think your observations are based on hard numbers but the way the pps and the disappointing quarter that past.
Ok buddy let's get your numbers in line
Revs = 11.7
Cost of goods = 5.1
Profit = 6.6
Operating cost = 11.2
Loss = 4.6.
So they are making 12 and losing 4.6
Help me understand your reasons for thinking they are doing so bad?
They are pretty close to being in the black.
A company that makes 12-15 a quarter and is expanding and is tight on costs does not just disappear cause of debts that are slowing growth. They are dramatically in a better spot than they were before the new CEO came on. He said they were basically bankrupt. The situation is very different in a good way.
You are too pessimistic.
Do you really think our situation is toxic? Just cause a decline of 3 mill? Walmart pulled out and they didn't micromanage the kiosks well enough the last quarter. If this was toxic dilution would have occurred while the pps was above the 23 cents. Didn't happen tho. More kiosks opened and now the race track kiosks make good exposure.
I felt as if your were referring to the loan payments them self and not the interest payments. Thanks chuck.
Everyone is making too many assumptions. Strong will play ball. Again. Everyone seems to think we need a new loan for everything. We don't. Strong could let a new loan take over the 25 mill coming due and lose some warrants attached to it. Everyone here is so convinced we need an entirely new loan for all the 80 mill. No one wants to discuss a loan for 25 plus the interest loans and money for operations for several months or a year. That's also a very good option.
They didn't miss a payment. They couldn't pay the quarterly interest. The notes come due July/August.
Dick has to re negotiate. Otherwise he will lose more than just a little of his 80 million. He won't hamstring ecig. He might just get more incentives the more he slowly agrees
He states mid June is the goal for the refinancing
Is this a new spot? Thanks for posting
This is a great news event. Lots of exposure. VIP is still relevant in vaping and they are working hard to stay at the front of vaping in the uk. Hopefully they can expand the brand to other parts of Europe and use this to its advantage.
If they get a loan for the amount do in August then they would not need to reset warrants if the money is coming from someone else besides calm waters. Also, once this August loan coming due is paid off with a new loan then the next date for loans coming due won't be till late 2017. That is big. Get a loan for the August due dates and money to pay any other monthly or quarterly interest and also funds for expansions. The value will come back fast the the pps.
So that is 2 kiosks and 1 store opening in less than 2 weeks? Plus the websites being updated with new products and the new us VIP and vapestick being created and the upcoming vape juice website coming soon?
They sure don't act like a company that is in trouble. They are moving forward and not letting the pps slow it down
Well they don't need a loan for all of it. If you look at the maturity dates it's mostly in later 2017 and a lot in late 2018. The monthly interest payments and buy out of the 19 mill coming due would be good. But the rest strong can hold.
So the 19 and 2.3 mill per quarter due makes about 28 for the next 3 quarters. If you add money for expansions then maybe the should ask for 35-50 mill.
That's not unreasonable. Just use the warrants that are left to max out the 300mill in shares allowed.
I expect something similar soon. They don't have to buy out strong 100%
If this was a real chump penny stock then the company would dilute and really drive it down. They have not don't that tho. It is a sign of a real ethically strong company. It's been at 75 mill for what? 6-9 months now? That is a real positive to think about when it comes to refinancing.
This is a pretty obvious play. We just have to sit back and see what the new CFO can do. How many institutions does he know that can fund us?
Look at the press release, they clearly state that his specialty is growing small companies with investor funding.
Leading capital raising is precisely what the company needs!
William Seamans , 59, brings more than 20 years experience.
Mr. Seaman held Chief Financial Officer positions at several growth companies,
leading capital raising, M&A, and business development initiatives.
Good eye. The share price has held up well since the initial drop don't you think? Hopefully they get the financing agreement going sooner versus mid June to help push it back to 20-25 cents. Honestly 17 cents is not that far off our pps before the last earnings release.
Right so did you see where the sales declined? And where sales increased? And when the larger amount of debt comes due? 2017 is some but the majority is 2018. Also the decline was mostly from fun and not VIP.
Ha! Get real
That's a pretty weak argument. You can do better
Yup. I realize that. Lol we are taking millions.
Due dates and amounts of debt
Year Ending March 31,
2017 $ 30,110
2018 20,535
2019 51,450
Total $ 102,095
They still have time. And if they can re negotiate the 19 mill coming due in a very good way to access cash for the company then we can meet these dates. Lots of time.
Another thing to keep in mind;
Besides the warrants that need to be converted this July and August totaling 19 million the next maturity date for any others will not come due until December 2017.
They do not need a huge amount of help here guys. Not like the calm waters level.
Credit agreements
April 2015 Term Loans
April 2018 12.0 % $ 41,214
June 2015 Term Loan
April 2018 12.0 % 6,000
Forbearance Agreement
Convertible Debt Various July/August 19,457 19,785
VIP Promissory Notes
December 2017 5.4 % 7,130 (6)
The increase in net sales is primarily attributable to (i) an increase of $1.5 million related to the GEC reporting unit. This increase was partially offset by (i) a decrease in net sales for the Vapestick reporting unit of $0.7 million, (ii) a decrease in net sales of $0.4 million for the VIP reporting unit, and (iii) a decrease in net sales for the FIN reporting unit of $0.3 million.
Honestly. The decrease is spread well apart the company.
It's not cause of lack of buyer interest.
And check this out
I think it the e commerce he keeps talking about
Launched vaping system in GEC division, and turnaround revenue reaching approximately $7.3 million in 2015 after reaching approximately $2.5 million in the first six months of 2015.
And they are active about expansions
· Initiated international growth discussions in Europe and Africa
Just need the money for it to expand.
Who should I call or email? Give me the info.
The 100 million shares still available and assets as collateral same as the current dick strong loans
If intrest per quarter is 2,7 and say they need about 5 mill per quarter than for a year they could ask for 35 mill. That's a year of funding. Not that bad.
Sorry authorized shares
They do have another 100 million left of the OS right? They could use that to take out a loan and use it to pay interest and for expansion.