Revolutionary Concepts, Inc. (OTCMKTS:REVO) reported it is designing a new major plan to recapitalize the company, solidify its financial position and enhance the value to its shareholders. It intends to raise $10 million to $25 million in capital to meet its operating expenses and support future growth and expansion. The proposed plan has measures to reduce or eliminate all of its outstanding debt amounting to $2.16 million. It wants to payoff outstanding “Notes” and related obligations. Also, there is a plan to repurchase as much as 140 million shares of its outstanding common stock. The overall objective of Revolutionary Concepts is to improve its financial balance sheet.
The expert view
Solomon Ali, the Senior VP of Revolutionary Concepts, said that the management is very delighted about the recapitalization strategy. It should enable the company to get required capital to meet operating expenses, mitigate the debt burden, strengthen the capital structure and improve the balance sheet. With the successful conclusion of the recapitalization plans, the company would be in a better position to focus on long-term growth plans.
Ali of Revolutionary Concepts further added that the management expects to get funds from royalties and licensing fees from the licensing of patents via the Licensee. It could place the company in a much better position to be acquired by a larger entity in the industry. The management believes that the stock price of the company is undervalued and that the recapitalization plan can add value to the shareholders. The company’s primary business is the development of a technology known as “EyeTalk” Communicator.
In the last trading session, the stock price of Revolutionary Concepts jumped more than 13% to close the trading session at $0.0060 per share. It declined more than 26% on previous trading session which was considered as a healthy pullback.