Need for Additional Financing. The Company's ability to continue as a going concern is dependent upon its obtaining additional financing to support the Company's operations and contemplated growth. The Company currently requires additional equity capital or debt financing to enable further expansion and or to sustain operations. No assurance can be given that the Company will be able to locate additional capital on terms acceptable to it or at all. No assurance can be given that the Company will be successful in its offer to sell the units contemplated herein.
Need for Additional Financing. Purchaser acknowledges and understands that the Company will need to raise additional financing, either through private or public offerings of the Company’s equity securities; provided, further, the Company may issue convertible debt securities to sources outside of this Private Placement or otherwise incur indebtedness through loans, lines of credit and other forms of indebtedness (the “Additional Indebtedness”). The issuance of additional equity securities or Additional Indebtedness may require the grant of certain rights, preferences or privileges superior to those of Purchaser; provided, however, the issuance of any Additional Indebtedness senior to or pari passu with the Notes shall require the consent of the Purchasers holding a majority of the then outstanding principal of all of the Notes then issued and outstanding. In the event the Company is required to raise additional funds, Purchaser acknowledges and understands that there is no assurance that the Company will be able to obtain the additional funds necessary on terms favorable to the Company, or at all.
Need for Additional Financing. The Purchaser understands that it is likely that the Company will need to obtain additional financing following consummation of this Agreement in order to fully execute its current business plan and objectives. Such financing could be in the form of a sale or sales of equity or debt or equipment lease financing or a combination of the foregoing. Such financing could lead to material dilution to the Company’s then existing equity holders and could provide for terms that restrict the operations of the Company. There can be no assurance that any additional financing following the consummation of this Agreement will be available to the Company on commercially reasonable terms or at all. In the event the Company is unable to obtain additional financing, it may not be able to fully execute its business plan and objectives and could be forced to curtail some or all of its operations.
Need for Additional Financing. In all likelihood, the Company will need additional funds to take advantage of any available acquisition business opportunity. Even if the Company were to obtain sufficient funds to acquire an interest in a business opportunity, the Company may not have sufficient capital to fully exploit the opportunity. The ultimate success of the Company will depend upon its ability to raise additional capital at the time of the acquisition and thereafter. When additional capital may be needed, there can be no assurance that funds will be available from any source or, if available, that they can be obtained on acceptable terms.
Need for Additional Financing. The Company has limited financial resources. In order to meet its financial needs, it is anticipated that the Company will likely require, in addition to this Offering, additional funds within the next twelve months to further expand and grow the business. As is typical, demand and market acceptance for as yet unintroduced service is subject to a high level of uncertainty and risk. Because the market for the Company’s service is evolving, it is difficult to predict the future growth rate, if any, and size of this market. There can be no assurance either that the market for the Company’s service will grow. If use of its service fails to grow, the Company’s ability to establish itself in the market would be materially and adversely affected.
Need for Additional Financing. Based on the Company’s projections, even if the maximum amount of this offering is subscribed for, the Company will need to seek and secure significant additional financing in the near future. No party is obligated to provide financing to the Company and there can be no assurance that any such additional funding, including through the Proposed IPO, will be available to the Company or, if available, that it will be on reasonable terms. Any such additional funding may result in significant dilution to existing stockholders, and may be on terms unfavorable to the Company. If adequate funds are not available, the Company may be required to significantly curtail its plans and seek to obtain funds through arrangements with third parties that may require the Company to relinquish substantial rights in exchange for such funding. The Company’s future capital requirements will depend on many factors, including cash flow from operations, the Company’s ability to market its planned products and services successfully, competition and market developments.
Need for Additional Financing. The Stockholder understands that it is likely that the Parent will need to obtain additional financing following consummation of this Agreement and the Merger in order to fully execute its current business plan and objectives. Such financing could be in the form of a sale or sales of equity or debt or equipment lease financing or a combination of the foregoing. Such financing could lead to material dilution to the Parent’s then existing equity holders and could provide for terms that restrict the operations of the Parent. There can be no assurance that any additional financing following the consummation of this Agreement or the Merger will be available to the Parent on commercially reasonable terms or at all. If the Parent is unable to obtain additional financing, then the Parent might not be able to fully execute the Parent’s business plan and objectives and could be forced to curtail some or all of its operations.
Need for Additional Financing. The expansion of Buyer's restaurant operations in 1996 and 1997 has been funded with the proceeds of the October 1995 Public Offering and the August and November 1996 sales of preferred shares, along with bank financing. Management believes that it will have access to sufficient funds to complete its planned acquisitions and restaurant openings in 1998, but there can be no assurance that additional funds will not be necessary. Future events, including the problems, delays, additional expenses and difficulties frequently encountered by similarly situated companies, as well as changes in economic, regulatory or competitive conditions, may lead to cost increases that could increase the anticipated costs of the planned acquisitions and restaurant openings. Management may also determine that it is in the best interest of Buyer to expand more rapidly than currently intended. In any case, additional financing may be required. There is no assurance that Buyer will be able to obtain such additional financing, or that such additional financing will be available on terms acceptable to Buyer and at the times required by Buyer. Failure to obtain such financing may adversely impact the growth, development or general operations of Buyer. If, on the other hand, such financing can be obtained, it will most likely result in additional leverage or dilution of existing shareholders.
Need for Additional Financing. On April 14, 1999, the Company negotiated new financing agreements with a bank. Under the terms of the new financing agreement, the bank has issued separate financing agreements for each of the Company's operating subsidiaries, Protective Technologies International Inc. (A PTI") and Flents. Each company now has a line of credit collateralized by such company's inventory, receivables and other assets, and guaranteed by the Company as well as a separate term loan. The line of credit agreements require the Company and each of PTI and Flents to comply with certain affirmative covenants, including the maintenance of maximum leverage ratios, minimum fixed charge ratios and minimum net worth amounts, all as defined in the agreements. PTI failed to meet the leverage, fixed charge and net worth covenants for PTI for 1999, and the bank waived them. PTI is unlikely to meet the affirmative covenants in 2000, and, unless the bank waives such covenants, PTI will be in default. The Company needs to raise additional equity funds to avoid default under the credit agreements. No assurance can be given that such financing will be available to the Company, or, if it is available, that it will be on terms favorable to the Company. If additional funds are unavailable, the Company will default under such credit agreements, and no assurance can be given that the bank will continue to waive such defaults. A default by PTI could induce the bank to accelerate the loan, requiring PTI to seek alternate financing. No assurance can be given that such financing will be available to the PTI, or, if it is available, that it will be on terms favorable to PTI. In addition, certain negative covenants (which are all defined in the agreement) call for the Company to obtain the bank's consent prior to business acquisitions, debt guarantees, sales or transfers of accounts receivable, loans, total annual capital expenditures in excess of $300,000 (which was waived for 1999), dividend declarations or payments, distributions of assets, incurring certain debt, and liens against assets. These covenants could hamper the Company in making future acquisitions, which could negatively affect future earnings.
Need for Additional Financing. Such Investor understands that it is likely that the Company will need to obtain additional financing following consummation of the sale of the Shares in order to fully execute its current business plan and objectives. Such financing could be in the form of a sale or sales of equity or debt or equipment lease financing or a combination of the foregoing. Such financing could lead to material dilution to the Company’s then existing equity holders and could provide for terms that restrict the operations of the Company. There can be no assurance that any additional financing following the sale of the Shares will be available to the Company on commercially reasonable terms or at all. In the event the Company is unable to obtain additional financing, it may not be able to fully execute its business plan and objectives and could be forced to curtail some or all of its operations.
