Trans-Pacific Aerospace Company Inc (OTCMKTS:TPAC) Flatlines
Trans-Pacific Aerospace Company Inc (OTCMKTS:TPAC) closed the first session of last week at $0.0007 per share. It closed the last session of last week at exactly the same place – $0.0007 per share. There were some intraday movements between June 8 and June 12, but on the whole, things weren’t really that exciting.
And that’s a bit strange considering TPAC‘s triple-zero status. It’s especially weird when you have in mind the numerous events that happened around the company last week.
A press release from June 9, for example, told us that full-scale production is about to start in China. Apparently, they have managed to secure some financing and all they need to do now is wait for the purchase orders to start flooding their inbox.
A day later, the management team conducted a conference call and investors appear to be pretty happy with the things they heard. And with good reason. The people heading TPAC said that the revenues during the first year of production should hover around $4.5 million and they announced that they expect this figure to grow to about $150 million by year five. They also promised that the share structure will be patched up with the cancellation of 700 million (or more) shares. In addition to this, TPAC‘s Twitter profile told us that the dreaded convertible debt is now gone and that the new source of financing is non-dilutive.
Sadly, the hard work that they put into closing all those deals and announcing them to the public meant that they didn’t have the time to put together the quarterly report for the period ended April 30 on time. Still, they said through Twitter that it should be out within the extension period and announced that once they are ready with it, they’ll hurry up to get the share repurchase campaign going.
By the looks of things, TPAC is on the brink of transforming itself from a small development stage OTC enterprise into a serious company with seven (or possibly eight and nine) digits under its revenues section. Yet, the stock isn’t moving.
Indeed, the hype around the message boards is quite strong and TPAC‘s Twitter profile is inundated with messages from people saying what a privilege it is to be a shareholder, but despite this, investors simply aren’t convinced. And, once again, with good reason.
As we mentioned in our previous articles, we’ve heard the story about the start of the revenue generation before. At the end of March 2014, for example, TPAC said that they have recorded the first sale of their spherical bearings. Bill McKay, the company CEO, was quite happy with the purchase order and he announced that everybody at the company is “committed to exceeding customer expectations”. We don’t know what their customers’ expectations were, but they certainly weren’t exceeded because during the twelve months ended October 31, 2014, TPAC registered no revenue whatsoever.
Of course, things might turn out to be different this time, but while you’re waiting for the proof, you mustn’t forget that the note holders have already received tonnes of cheap shares and they are probably looking for a buyer. You should also decide whether you want to be that buyer.
