Revolutionary Concepts, Inc. (OTCMKTS:REVO) stated it is designing an innovative plan to recapitalize the company, improve its financial position and add the value to its shareholders. The plan is to raise capital of almost $10 million to $25 million to fulfill operating expenses and also support growth and expansion plans in the near future.
Reduction of debt
It also plans to take initiatives to mitigate or remove all of its outstanding debt of $2.16 million. Revolutionary Concepts intends to payoff outstanding notes and other associated obligations. The other measures include repurchase of 140 million shares to improve the financial balance sheet. Solomon Ali, the Senior VP said that the management is delighted with the designed recapitalization strategy.
The objective is to get necessary funds to meet operating expenses and reduce the debt burden. It will strengthen the capital structure and have a positive impact on the balance sheet. If everything goes as planned, the company would be well places to concentrate on long-term growth plans.
The management of Revolutionary Concepts, Inc. (OTCMKTS:REVO) expects to get capital from royalties and other licensing fees from patents via the Licensee. The successful completion of plans would make is an ideal candidate for acquisition by a larger firm in the industry. As of now, the management considers the stock price as undervalued and the recent plans can help to boost the stock price. Revolutionary core business is the development of an innovative technology termed as “EyeTalk” Communicator.
In the last trading session, the stock price of Revolutionary Concepts declined more than 21% to close the trading session at $0.00470 per share. It eroded all the gains recorded in the previous trading session. The sharp decline at a share volume of 22.23 million compared to average volume of 21.03 million. The firm currently has a market cap of 3.66 million.