Revolutionary Concepts, Inc. (OTCMKTS:REVO)’s new idea did not give it enough wings as the company is back into the red zone. The company managed to record green sessions over the last few days after announcing its recapitalization plans. However, the delayed 10-k filing is doing it more harm than anything else.
Recapitalization Plan
Earlier this week, Revolutionary Concepts, Inc. (OTCMKTS:REVO) released a press note, where it briefed investors about its plans to recapitalize the company. As per the plan, the company talked about raising nearly $10-$25 million of capital in order to run its operational activities smoothly.
Also, the company noted that it aims to repay all of its outstanding debt of $2.16 million, which is currently held in the form of Senior Secured Convertible Notes. Further, Revolutionary Concepts, Inc. (OTCMKTS:REVO) stressed on the idea of boosting its Balance sheet and increase shareholders’ value through the repurchase of nearly $140 million worth of its common stock.
Forward-looking statements
The company went gaga over the anticipated revenues that are due to come through licensing fee and other royalties. Revolutionary Concepts, Inc. (OTCMKTS:REVO)’s Senior Vice President Solomon Ali even went ahead to speculate that the company can likely become an acquisition target for another company based on its ability to generate revenues through licensing fees. Though such statements can inspire investors to remain invested in its stock, but the absence of an impending 10-Q offsets any optimism around the company.
Already a six-month old 10-Q filing uncovers the company’s grave financial standing as it held zero current assets and revenues then. Further, the delay in filing 10-Q by the company should not be overlooked in light of these forward statements. The investor’s sentiments reflected in the stock, which lost 26.39% value and settled at $0.0053 during the last trading session. Nearly 19 million shares exchanged hands on the day.
