Revolutionary Concepts, Inc. (OTCMKTS:REVO) set a record yesterday after its shares zoomed to an impressive level once again. The reason for optimism around the stock is the company’s update on its plan to recapitalize the company, bolster its financial position and enhance shareholders’ value.
The new plan
Through a press release, Revolutionary Concepts, Inc. (OTCMKTS:REVO) loaded the shareholders with some interesting highlights. The company said that it will raise in between $10-$25 million in capital to quench its operating expenses needs and invest towards future growth and expansion.
Further, Revolutionary Concepts, Inc. (OTCMKTS:REVO) briefed the plan of extinguishing its whole outstanding debt of $2.16 million by repaying the current Senior Secured Convertible Notes and attached obligations. The company is mulling to strengthen its Balance Sheet and buyback $140 million shares of its common stock.
In the meantime, Revolutionary Concepts, Inc. (OTCMKTS:REVO)’s Senior Vice President Solomon Ali also pointed out at the anticipated revenues from licensing fees and royalties. He noted that such receipt of fees will boost the chances for the company to become an acquisition target of a company with buying interest. Alongside this, the company has already disclosed the projected revenue of $14 million to $24 million in the form of a settlement agreement reached with Eyetalk365 LLC.
Amidst the positive developments, it will be hard to ignore the loopholes that exist within Revolutionary Concepts, Inc. (OTCMKTS:REVO). As per the 10-Q, which was filed more than six months ago, the company had nil current assets and revenues. Its current liabilities stood at $1.8 million and operating loss at $128,000, which is sufficient to raise doubt in anyone’s mind.
However, it seems that investors have put aside the concerns for the moment, which is reflective in the company’s stock price. Revolutionary Concepts, Inc. (OTCMKTS:REVO)’s share price surged by more than 61% to $0.00720 as 14.70 million shares traded during the last session.