Financing is not needed today only because of the stop work order. If/when Tristar Air LLC begins work fulfilling the contract they will need cash for operations.
You do know that the military doesn’t pay in advance, right? Contractors spend their own money to fulfill and then invoice the government and wait to be paid. It’s not as if the US government doesn’t have an excellent credit rating, but they are not quick to pay and the money for continued operations has to come from somewhere. In this case cash from operations will come from convertible debt.
The last financing agreement, without looking it up, was something like a 10% discount to the lowest pps in the last 10 trading days or some such. Actually very good terms for an otc company. But TMPS was otcqb, current, and had a wonder boy ceo at that time. How much worse the terms now that they’re pink, stop sign, and ceo resigned for “personal reasons”?
Best case scenario here is a refinance on the past due note with Johann, and a win on the protest. This best case will only result in more debt. Given the A/S is pretty maxed, we’re talking a RS or A/S being raised here.
Upside is priced in. Volume is non-existent, pps is drifting lower with no news. Might be a lottery ticket when the gap fills.
