To us, the mortals, big loans are committed once in a blue moon! But if you’re name is PokerTek things drastically change! Remember the company has announced a needed infusion of cash last week? Well, apparently, they’re going to get it! It seems like a group of executives and board members at PokerTek have effortlessly lent about 2 million bucks to the Mattews-based company.
Besides that, PokerTek's filing with the Securities and Exchange Commission has revealed they’re taking out another $1 million loan from UBS, in exchange for a lien against PokerTek's holdings of auction rate securities. According to a recent press release, the loan was made personally by Lyle Berman, James Crawford, Lee Lomax and Lou White and it is extended to the company on favorable terms with no dilutive warrants and carries no prepayment penalties or performance covenants. In fact the Company agreed to secure the loan using PokerTek's fleet of PokerPro tables in the field as collateral.
In the same press release, the chairman and one of the investors, Lile Berman, said that: "Quite simply, we believe in the future of the company. This loan allows our team to continue executing their plan that, thus far, has delivered revenue growth while efficiently managing costs." So, they’re just expanding and not having any rough time?!
The legal terms seem to be rather permissive with this kind of money, as the loan was issued at an interest rate of 13% and involves an interest payable on March 24, 2010. Not to mention the agreement leaves open the possibility for an extra $1 million loan, in case what they’ve already sucked is still not enough!The official representative’s statements were surprisingly neutral, as it has been reported that PokerTek was already facing some cash flow problems. In fact, at the end of 2007, PokerTek had $7.2 million in current assets on its balance sheet, but they had only a little more than $3 million a quarter, as a solid reserve. Apparently, even with improving performance, they’d still need to secure more funding, as the numbers they indicated in their last earnings report show they were not living the best days ever. Besides thatm the US credit crisis has just precipitated PokerTek's cash concerns!
PokerTek's CEO, Chris Halligan, added: “We are grateful to the founders who, by putting up their own capital, have demonstrated confidence in management and PokerTek. We had been exploring options over the last few weeks and had several offers from outside firms to fund the company. We believe that funding PokerTek from within the family' and at such favorable terms was clearly in the Company's best interest”.
PokerTek's CFO, Mark Roberson responded: “We remain well positioned to grow in 2008. We remain confident in our future in both the casino and amusement businesses and look forward to reporting our Q1 results in April.”
Back in October 2005, PokerTek issued 2 million shares at its initial public offering in, raising about $28 million. Even if at the end of 2007, $6 million of PokerTek's current assets were invested in auction rate securities, they have experienced failed during early 2008, meaning that they have not been able to liquidate their investments in the ordinary course of monthly auctions. Later on, on March 31st, PokerTek has officially reclassified their auction rate securities as “non-current assets.”
So, I just wonder, do they needed a push to go up, or are they down? Powered by: http://www.casinodiario.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment