TS03 Inc Trust Units TSTIF

Cornered

[SunnyShadow]

In the Q2 release, the Company states that:  "Unless the Company succeeds in raising additional capital or successfully increases cash generated from operations, it is anticipated that the Company will be unable to continue operations through the end of the last quarter of 2019 without violating this minimum cash requirement."

If true, the Company was really cornered without much of issue at sight.  In such a situation, without being able to raise additional capital through loans (thanks to GK), it was salvation to be taken over.

However, the same press release states that "The Company had $9.2 million in cash and cash equivalents and $19.7 million of debt as of June 30, 2019. The Company’s operations consumed $2.0 million in cash in the second quarter of 2019."  Thus, TSO3 basically had cash to finance operations until the beginning of 2020.

With this in mind, given the inability of RR and company to kickstart sales (4 units sold in Q2 is an admission of guilt), the BOD choice was between being scooped by Courage, or find an alternative at any price.

Let us hope that someone else comes out with a higher bid while being ready to absorb the $3,076,000 termination fee representing 4.5% of the $68.6 million enterprise value iomplied by the 0.43 price.