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Rich735

08/04/06 8:25 PM

#15321 RE: tooflets #15314

Check out the I box. In the MN1 interview on top,Corr says now dilution! (or R/S Like that!!!)
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aqua_man

08/04/06 11:55 PM

#15346 RE: tooflets #15314

tooflets, you have a great point that I think is worth repeating. RushNet must have the money, but "Where did the money come from?"

There are 3 major ways to finance a deal of this magnitude.
1. Equity (stock financing) - we can only assume that this would be Lynch's money, because no further dilution is suppose to occur according to Corr's statements.
2. Debt - Do you really think that a bank would finance a pinky? I don't. Too risky.
3. From current revenue streams. - We can hope, but I don't think we're generating this kind of cash, yet.

My guess is the distributor will be purchased with the Lynch financing. Corr began pursueing Garden 6 months ago. The Lynch announcement came 3 months ago. Makes perfect sense...the Lynch deal appears to be finalized. IMO