tubber, re JMIH
It looks like it's going to cost $300K ($32K of which had been paid as of last 10Q). Given the company's profits and balance sheet, I don't think they need to issue additional shares. Would be nice if the company threw us a PR bone. Most OTC:BB companies would be milking this capacity expansion for all it's worth.
From last 10Q:
During December 2004 the Company entered into a Commercial Lease and
Purchase Option with a third party for the lease and potential purchase of an
additional operating facility in an effort to expand its manufacturing and
production capacity. The facility will provide the Company with approximately
50,000 square feet of additional manufacturing and production space. Under the
agreement the Company has agreed to lease certain property and facilities in
Florida for a term of one year at $14,500 per month. The lease shall commence on
the earlier of the date the: (1) facilities are determined to meet all
applicable environmental and building code requirements (" Code Requirements")
or (2) Company takes possession of the facilities. The Company has agreed to
contribute one-third of the funds necessary to satisfy Code Requirements, which
are anticipated to be approximately $300,000. To date, the Company has
contributed approximately $32,000. During the term of the lease the Company has
a right an option to purchase the facility. If the Company exercises such
option, all funds contributed by the Company to satisfy Code Requirements will
be deducted from the purchase price. If the Company declines to exercise the
option or is unable to secure acceptable financing, Carl Herndon will have a
similar option to purchase the facility. As of June 1, 2005 no events have
occurred that would trigger the commencement of the lease.
In conjunction with opening the above mentioned additional facility,
the Company will require certain employees to relocate. Effective January 13,
2005, as an incentive for relocating and remaining with the Company, six
non-executive employees were granted options to purchase, at $.30 per share, an
aggregate of 1,000,000 shares of common stock of the Company pursuant to the
Company's 2004 Management and Director Equity Incentive Compensation Plan. The
trading price of the Company's Common Stock, as reported on the Over the Counter
Bulletin Board, on January 13, 2005 was $0.30. The options are exercisable for a
period of five years, but will only vest in the event that the Company opens the
additional facility and the employee relocates to the new facility.
AI
