Expo Holdings Inc. (EXPH)

[Stock_Barber]

The FACTS on a line of credit

Actually what you just posted proves that they DO NOT have a line of credit with Wachovia/Wells Fargo. It was one, but it was revoked and turned into a long term loan.

The $1M invoice factoring is not a line of credit. You can not borrow against it.

I really don't understand the insistance here and on other boards that these are lines of credit, when they absolutely are NOT lines of credit.

This is more than symantics. The definition of a line of credit is:

"An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period."

Or this one: "A credit arrangement in which a financial institution agrees to lend money to a customer up to a specified limit. A line of credit, generally arranged before the funds are actually required, provides flexibility for the customer in that it ensures the ability to meet short-term cash needs as they arise."

Both the $1M invoice factoring and the long term loans do not fit this, or any, definition of a line of credit. Even Crestmark has to put the term "line of credit" in quotes because it is not one. They could get sued if it wasn't in quotes. If you don't follow this, just ask yourself... why is it in quotes?

Why do you think that EXPH repeatedly uses the term "credit facility" to describe the $1M loan?

I know, acknowledging that EXPH does NOT have a line of credit is damaging, but it is the truth.

Let me phrase this as a question... if EXPH needs to borrow money, do they currently have an agreement in place with Wachovia, Wells Fargo, or Crestmark in which they can borrow money?