Redman's

[redman_2014]

I don't know if they will require the funds from the warrant redemption for the $20M 2011 capex. They are guiding to earn over $31M in 2011, so they may decide to get a short-term loan to cover them until they have generated enough from operations. IR has stated they will be able to cover the 2010 expansion from cash on hand and cash from operations. If they do require capital I think it will be short-term in nature and will be for only a portion of the $20M.

I haven't asked yet but am wondering if management would ever entertain a cashless conversion for the warrants. I plan on asking IR sometime in the near future.


-Adam