Investors are Unsure About Trans-Pacific Aerospace Company Inc (OTCMKTS:TPAC)
On the face of it, Trans-Pacific Aerospace Company Inc (OTCMKTS:TPAC) and its CEO, William McKay, have been coming up with lots of good news recently. Yesterday, for example, a press release told us that almost all of the convertible debt has now been eliminated. Apparently, only one of the notes is still outstanding and it is about to be paid off with cash. The rest have already been turned into stock and Mr. McKay has been told that the toxic debt providers have now liquidated their positions in TPAC.
In another press release from a couple of weeks ago, Mr. McKay also told us that nearly 780 million shares of common stock have been returned to the treasury and are no longer a part of the total O/S count. He’s also posting frequent updates and explanations of what’s going on with the company on TPAC‘s official Twitter profile.
Based on this, you’d be forgiven for thinking that the stock is flying high. It’s not.
In fact, after it briefly emerged out of the triple-zero levels on June 19, TPAC quickly came back down and it’s been spinning its wheels between the $0.0006 and $0.0005 for the last few days. Although there are people who praise and re-tweet Mr. McKay’s posts around the social networks, others aren’t quite as convinced. They reckon that nothing is really happening and that the stock won’t be going anywhere any time soon. It must be said that they might have a reason or two to be suspicious.
We’ve established in our previous articles that Mr. McKay’s words haven’t led to actual results in the past, and the skeptics are fearing that this might happen again. Of course, Mr. McKay disregards them as “paid bashers”, but it must be said that there are a few somewhat strange things about his posts and press releases.
Take the announcement of the cancellation of the shares mentioned in our second paragraph as an example. It was also supported by an 8-K form, but neither the press release, nor the filing says what the O/S count is after the cancellation. And the question of the O/S count is something of a sore wound for TPAC‘s shareholders because they’ve been forced through quite a lot of dilution recently. Between April 30 and June 15 alone, the number of issued and outstanding shares went from less than 1.6 billion all the way to more than 3.7 billion. We’ve seen no official information on the share structure since then which means that we’ve no idea what the effects of canceling 780 million shares could be.
Mr. McKay’s tweets are also a bit bizarre at times. He recently posted some photos of what appears to be an empty facility that hasn’t been used for a while and announced that this is where TPAC‘s bearings will be assembled. He said that it will receive a new lick of paint after which the machines will be rolled in. More importantly, he promised that this will not affect the manufacturing schedule and he was adamant that, despite not looking like it, TPAC is ready for full-scale production (something he mentioned in a press release a few weeks ago).
He didn’t say, however, how the company intends to finance the renovation of the site and the actual manufacturing process. If the latest 10-Q is anything to go by, this will be a tall order to fill because two months ago, the company had less than $25 thousand in current assets. He did promise that the company won’t be using the services of the toxic debt providers from now on, but he forgot to mention what sort of financing methods it will seek. And the tormented shareholders will probably be happy to learn a bit more about this.
Does all this mean that TPAC is on its way to the bottom of the chart? Not necessarily. But it doesn’t sound too confidence-inspiring, does it?
About thirty-five minutes after the opening bell, TPAC is fluctuating in the all too familiar range of $0.0005 to $0.0006 per share.
