sw owes another $360,000 Cash to Wells Fargo by 31 Oct ,,,
According to the latest 10-Q [ dated 19 August 2008].
The 'odds' are not looking good , unless ;
maybe the 'Officers' , decide to pay it from their
personally-awarded and previously grossly over-paid
"STOCK BASED COMPENSATION" [WHICH WAS OVER $2,531,000].
Below is the relevant parts of the last swvc 10-Q :
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STOCK BASED COMPENSATION
During the six months ended June 30, 2008 and 2007, the Company issued 139,500,000 and 84,414,911 shares of common stock to OFFICERS, employees and consultants in exchange for SERVICES. The shares were valued at $494,500 and $2,036,704 based on the value of the shares on the dates of the grants.
NOTE 6 - LINE OF CREDIT
On March 4, 2008, Seaway Valley Capital Corporation and its wholly owned subsidiaries, WiseBuys Stores, Inc. and Patrick Hackett Hardware Company (collectively "Seaway" or the "Company"), consummated a five million dollar ($5,000,000) credit and security agreement with Wells
Fargo Bank, National Association, acting through its Wells Fargo Business Credit operating division (the "Line of Credit"). The funds available under Line of Credit are based on the Company's current INVENTORY with adjustments based on items such as accounts payable. The term of the Line of Credit is three years. The interest rate on the Line of Credit is equal to the sum of the Wells Fargo prime rate plus one and one-quarter percent (1.25%), which interest rate shall change when and as the Wells Fargo prime rate changes. These funds will be used for general working capital at the Company. Under the terms of the agreement, the subsidiaries are REQUIRED to maintain certain financial covenants including tangible net worth, net income and net cash flow amounts. At June 30, 2008 these covenants were NOT MET. The Company has notified the bank and has received a conditional waiver of compliance with these covenants at June 30, 2008. The Company MUST MEET the terms of the conditional waiver as follows:
· The base borrowing rate will increase by 3% to Prime + 4.25% from Prime + 1.25%. The difference between the rate as of April 1 (Prime + 1.25%) and the rate as of the date of the closing of the waiver (Prime + 4.25%) will be accrued and charged upon the last installment of the required $860,000 of capital funds (see below).
· Rate will be reset to a level to be determined based upon satisfaction of the following conditions:
o Provide $75,000 of capital IMMEDIATELY to satisfy conditions of the 1 st quarter waiver.
o Prepare revised monthly projections for the 3 rd and 4 th quarter 2008 (subject to WFBC review)
o PROVIDE $860,000 OF CAPITAL BY October 31, 2008, as follows:
§ $200,000 by August 31, 2008,
§ $150,000 by September 15, 2008,
§ $150,000 by September 30, 2008,
§ $360,000 by OCTOBER 31, 2008.
o Pay $20,000 fee.
Management believes they will be able to comply with the requirements of the conditional waiver as outlined above.
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We believe that we know Exactly what swxx 'Management'
actually means ; whenever they announce "Management believes".
We suggest that Wells-Fargo demand FULL payment from swxx ,
this time , and quit playing games with 'conditional waivers'
to slackers that have Never Met ANY Minimum Requirements.
If Wells-Fargo lets sw slide , while the last of the Hackers
Inventory [which IS The Loan Collateral] , slides out of the
back doors , The Real Shareholders of WFC will not be happy.
And , there are millions of WFC Shareholders , who may not
even be aware that they Now are , and have been , for Years .
For example : Anyone who owns even 1 share of any S&P-500
Index Mutual Fund , from Fidelity , or Vanguard , or anyone.
And , it may have been a 'default choice' , in their 401-k .
We suggest that WFC Shareholders call WFC 'Investor Relations'
on Monday , 3 November 2008 ; Just to make sure that WFC has
finally started enforcing Any Of Seaway's Absolute Minimum
Requirements , FOR ONCE ; And just to make sure that WFC can
get at least partially repaid , BEFORE sw-whatever goes BK.
We believe that WFC Actually Cares About The Concerns of
Their Real Shareholders , and customers , and 'Corporate
Image' , and 100+ Year Reputation ; unlike some of their
'publicly-held corporate sub-prime borrowers'.
extra, Sincerely.
P.S. ; We calculate 'odds' , based on Proven Historical and
Mathematical Facts. And, Never hope that a Zebra will choose
to change its stripes. Except when 'awarded' only 1 suit of
new stripes , and a multi-year roommate.
P.S.S. ; There is only 1 remaining way to possibly profit
from swxx. And, it only happens Immediately After any future
Reverse-Splits ; but there may not be enough time for any.
And, we don't think it's legal to Reverse Twice , within
6 months ; except , maybe , for grays or pinks ; but , they
still must do it Before BK.
AI
