Seemed pretty decent in general, but the one thing that I don't like that much (and was already stated in a press release) was the loan guarantee deal:
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On July 25, 2005, we executed a loan guarantee commitment letter with Alps Resources Bankers Inc. (Alps), a Florida corporation, for loan guarantees of up to an aggregate of USD 60 million, such loan to mature in five years from the date of issuance. Alps undertakes, pursuant to the agreement, to secure a bank guarantee from a Standard and Poor's A+ rated Bank
The loan guarantees shall be in increments of USD 10 million each. The first loan guarantee closing is anticipated to be on August 15, 2005. No assurances can be given that we will exercise our right to this initial USD 10 million increment.
Pursuant to the terms and conditions of the agreement with Alps, we will appoint two directors, designated by Alps, to our Board of Directors and will grant Alps ten million restricted shares of common stock. As a condition of the guarantee, and to secure the repayment of the guarantee, if exercised, Alps will have the right to receive, as collateral in the event of default, a block of control shares from the founders of HQSM.
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So they gave up about 10% of the company just for loan guarantees on a 5-year balloon payment note. Why couldn't the company get loans themselves without having to give up 10% of the company and a "control block" (whatever that means) of shares as collateral?
Could find very little info on Alp. Website is pretty darn vague, few specifics:
The original press release included this item which sounds like Alps is trying a little too hard to sound legit:
"The Management Team of Alps Bankers, its affiliates, subsidiaries and others have a total combined experience of more than 275 years in Business in general."
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