Raw - VEII. Presently, this company still faces some very serious financial challenges.
I am currently involved in a theme park financing development project that is taking a hard look at putting the Voyager on their site. The project manager had a conference call with VEII's executive branch yesterday. Here are the particulars:
The Voyager wheel as pictured in your post cost about $86 million a piece to construct. The Voyager design took about four years to complete. VEII is still short approximately $25 million from being able to break ground on the Rio Las Vegas project. It is my understanding that they have an L.O.C. in place for about $61 million @7%.
They asked my client about doing a private placement with them for the $25 million balance. He called me afterwards to discuss the particulars of their offer. Suffice it to say, its going to take some divine intervention in order to bridge their $25 million gap under the terms they are offering. Its simply not going to happen unless they become considerably more flexible and creative in their proposal. The Rio Las Vegas is merely going to convey the property to VEII to build the Voyager. They have no interest in committing any funds towards the construction. Neither does the state or local governments in Nevada.
My client is mulling a counter proposal to them, but I am discouraging him from doing so at this time. This company hasn't had a dime in revenues going on three years now. They are virtually tapped out and they're expectations are ridiculous regarding a proposed offer for venture capital.
The situation is certainly apt to change if management becomes both more realistic and desparate. One thing about the company I do like is their going concern business model and their co-op policy with the sites they plan to build the Voyager on. However, it will only become relevant if and when, they ever actually build one. We'll see.
Good luck.
Regards,
Naz
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