It seems to me that Unique is all about business. They bought this shell to facilitate their expansion, and they are proceeding meticulously and quickly.
Their filings are timely and they do not seem to be interested in diluting or otherwise decreasing shareholder value. Anyone concerned about the small A/S increase would benefit from reading the latest filing themselves. While they do mention the shares COULD be used to dilute, they explained that they were set aside to protect against the possibility of a hostile takeover, and that their intended destination was to people involved with the company. It's great when someone else reads these filings and then breaks it down, but people can misunderstand and misconvey details, and anyone who hasn't read the filing might come away with an incorrect perception of what was written.
Name and ticker change has been announced, and with the way these folks operate, I think we'll see it completed quickly. Remember, the merged in entity (Unique Logistics) is NOT an OTC company looking to squeeze money out of people with things like toxic financing, P & D promotions/takedowns, dilutive share selling tricks, false promises, and fairy tales about fake business ventures that only exist on a sheet of paper.
This is an established business with a worldwide presence and a guaranteed accounts receivable company extending their credit to $25,000,000 ($25 Million). That means that in theory they don't have to worry about accounts receivable whatsoever, as long as the customers are paying the invoice company. If someone defaults on a payment guess what, it's the invoice company's problem because they already purchased the debt from Unique. Imagine the amount of confidence and trust the invoice company must have for Unique to raise their limit to $25 million. Here's a look at that agreement from the 8k of Nov 2, 2020.
Item 1.01 Entry Into A Material Definitive Agreement
On November 2, 2020, InnoCap, Inc., a Nevada corporation (“InnoCap” or the “Company”), through its wholly owned subsidiary, Unique Logistics International (NYC) LLC, a New York limited liability company (“Unique NY”), entered into an Amendment to Secured Accounts Receivable Facility (the “Amendment”) with Corefund Capital, LLC (“Core”), pursuant to which the Company and Core agreed to increase the credit line provided in the original Secured Accounts Receivable Facility, dated May 29, 2020 (the “Accounts Receivable Facility”), from $12,000,000 up to $25,000,000. The remaining terms of the Accounts Receivable Facility were unchanged by the Amendment.
Pursuant to the Accounts Receivable Facility, Core agreed to purchase from Unique NY up to an aggregate of $12,000,000 (increased to $25 Million by the Amendment) of accounts receivables. The Accounts Receivable Facility provides Core with security interests in purchased accounts until the accounts have been repurchased by Unique NY or paid by the customer. The Accounts Receivable Facility includes fees payable to Core based on the number of days between the date on which an account was purchased by Core and the date on which Unique NY repurchased the account or the customer paid, as follows: (i) Less than or equal to 30 days, a 1.5% fee; (ii) more than 30 days but less than or equal to 40 days, a 1.75% fee; (iii) more than 40 days but less than or equal to 50 days, a 2.0% fee; (iv) more than 50 days but less than or equal to 60 days, a 2.25% fee; (v) more than 60 days but less than or equal to 90 days, a 2.50% fee; (vi) if more than 90 days, a 2.50% fee for each additional week or portion thereof.
Item 1.01 of this Current Report on Form 8-K contains only a brief description of the material terms of and does not purport to be a complete description of the rights and obligations of the parties to the Accounts Receivable Facility and the Amendment, and such descriptions are qualified in their entirety by reference to the full text of the Accounts Receivable Facility and the Amendment, which will be filed as exhibits no later than with the Company’s Form 10-Q for the quarter ending November 30, 2020.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The applicable information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference in this Item 2.03.
