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Re: crossroad post# 48862

Friday, 12/14/2012 4:07:30 PM

Friday, December 14, 2012 4:07:30 PM

Post# of 80868
I would have to agree with Codie in some regards, more specifically regarding his post about manufacturing in house being absurd.

IMO what they are trying to do is take the cash to flip debt (payables) into assets (inventory). This would change the complexion of mp balance sheet dramatically. Instead of having to raise money just to pay debt and have zero in this column; they would have an asset. Thus the money raised would have a two fold effect....they already have the space (lease agreements) in place.

In addition at their current rate of sales this would save them about 1.25 to 2 million per Q in the cost associated with the third party holding debt (product/inventory) directly.

Another term I have become more informed with recently is "piggy-back registration rights". This to me tells me their is a very good chance that financiers of the past will be selling their existing shares in the offering instead of a new round of dilution.

Combine the above and the face changes.

This is how my bet has been placed.

Then ad the recent lenders of the bridge finance.
Frost: 180th richest person in the world
Honig: done deals with frost before (likes to buy shares insider)
Smith: great education, lots of M&A experience, finance experience within the health industry.
2 others had interesting ties to the others and info and 1 I could not locate much

It appears mp lenders are a well rounded bunch.