Reverse Mergers & Low Float Plays

[Potse]

TCRI(.25)...some interesting things in that 8-K.......

$TCRI 8k out. What's your take on this.

Since the change in management/directors back in early November, I have picked up additional shares mostly around the 15-cent area. There are obviously still a lot of question marks regarding exactly what is going to happen on the operational and financing side of things, and how this will all play out, but certainly that 8-K filed yesterday is quite interesting.

Based on the verbiage in the employment agreements, the TCRI business direction is basically identical to management's other company -- Edgemode (crypto mining, data centers, high-performance computing). Management suspended operations of Edgemode (EDGM) last year due to lack of financing for mining equipment. I am not sure if Edgemode still has any remaining viable assets/operations (like mining/computing pool contracts with existing data centers), and whether any of those things would eventually be moved into TCRI.

I think it is fairly clear/obvious that Phoenix has a pretty good idea of what is going to happen with TCRI. It would seem unlikely that Phoenix would be preparing to provide TCRI with a $75M line of credit unless all the parties involved here are reasonably aware of what each other intends to do. The equity/debt financing that management will be seeking to repay the $75M line of credit is probably going to be the most pivotal thing for TCRI. Bad terms/conditions could derail TCRI as an investment, and good terms/conditions might cause the stock to move nicely higher. A financing of this magnitude will obviously require the involvement of large institutional investors or extremely wealthy individuals. It will be interesting to see if the heavy involvement of Phoenix in TCRI (and the success/attention that Phoenix had with its IPO) plays a major role in the financing attempt.

Now, it is entirely possible that things here could turn out badly for various reasons, but I am somewhat encouraged by some of the things I saw in the 8-K. It appears to me that Phoenix has taken some precautions to help protect TCRI from some bad decisions or failure by the current management. Now, Phoenix itself could make mistakes and exercise poor judgement, but the fact that Phoenix will be monitoring things makes me a little more comfortable with my TCRI investment than if management had no supervision at all. A few things I found somewhat noteworthy.....

1) Management receives no compensation (no salary, no warrants) unless TCRI is successful in raising at least $75M. Phoenix can also terminate management's employment if certain revenue timelines are not reached.

2) There does not appear to be any cashless exercise features on the warrants that management will receive. If management wants to exercise any of the warrants, it will need to come up with the cash to do so.

3) It appears to me that Phoenix must approve any new liability for TCRI. In other words, if management wanted TCRI to enter into a convertible financing Phoenix would need to approve it first. This policy should decrease the risk of TCRI getting saddled with some type of toxic financing. From the employment agreements........

Employee serves under the direction of the Board of Directors and cannot obligate the Company to incur any liability without the approval of the Board of Directors