TPAC owns a proprietary technology which is not subject to export restrictions established by the U.S. Department of Commerce or Commerce Control List. This permits TPAC to manufacture aerospace approved self-lubricating commercial aircraft consumable component parts. TPAC now aims to monetize its proprietary technology. The company is currently focusing on leveraging its product design and engineering expertise with manufacturers in international markets and forming Licensing and Service Level Agreements to gain access to their manufacturing facilities or distribution network. By collaborating with foreign partners that have a strong local presence, TPAC will benefit from local economies of scale. This model is particularly well suited to emerging nations such as China and the Middle East. TPACs business model targets countries where the resulting Company/entity is the sole domestic manufacturer -- where commercial aircraft manufacturers have offset obligations.
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TPAC will implement a Share Reduction program in 2017.
Timeline estimates as early as 2ndQ (April 2017). Type of program: TBD
Share Structure as of 8/24/2016:
Outstanding Shares - 3.73 Billion
OS Non-Restricted - 3.33 Billion
Authorized Shares - 4.50 Billion
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TPAC RECONSTRUCTIONS EFFORTS AND EFFECTS
BTL -- a long time part manufacturer of TPAC signs an agreement to manufacture TPAC Spherical Bearings under a Licensing and Service Level Agreement for ten years at an annual contract value of $13.5M/year. This contract commences in the first quarter of 2017. TPAC will start moving NAVAIR certified facility to the BTL facility in the month of September.
Timeline scheduled move to complete EOY 2016.
Effects: Signed contract provide base income for $13.5M/year; Reduces TPAC debt losses and secures forward momentum. USA FR will apply proper percentage to MRVB creating adequate cashon-hand to strengthen the TPAC OTC stock offering. Estimated percentage per year -- up to 20% of net profits. The contract also provides a clear way to demonstrate TPAC as a U.S.A business exporter to China creating an easier process to take advantage of the $85M LOI when applicable, if and when the absence of a needed EXIM nomination is absolved.
TPAC Australia -- signs Licensing agreement and is presently working on a government scenario to build a new TPAC manufacturing facility to handle the AU defense and commercial aeronautical
markets. Once the complete details have been devised, there will be a second Service Level Agreement. Timeline for SLA execution marks milestone for close of 2ndQ 2017.
Effects: Increased revenue; Global exposure; increased market share; higher volume of material cost means lower price per quantity (TPAC material costs lowers and profits points rise); additional stability to cash-on-hand/retained earnings.
TPACs estimated price per share rise up to $0.05
Multinational Status -- Forming and incorporating TPAC AU; completed the milestone. TPAC will soon raise its presence through new Licensing and Service Level Agreements in the Middle East Regions.
Timeline for Middle East Regions insertion for close of 3rdQ 2017.
Effects: Virtual acquirements bring higher visibility to Boeing and other majors in the aeronautical industry; provides appearance of a one-stop-shop.
Export Import Assurance Division -- Created July 2016 as a separate entity; private concern presently with on-line regional coverage; Asia focus in China; Expansion efforts to Africa. Timeline for expansion to Africa -- EOY 2016.
Effects: Provides TPAC EIA involvement in Global opportunities up to $100B/year; Supporting sectors of energy, precious metals, agriculture and base metals by offering EIA into China as the second largest economy; This type of business supports the EXIM $85M SGLP process. Estimated retained earnings of 2.7 percent as a minimum, 22 percent as a maximum
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REVENUE
Per the USA FR, collection of the manufacturing Licensing Fees will commence EOY 2016. TPAC moves into its 4th quarter with great revenue positioning. Positive cash flow and all on demand loan debt zeroed. New contract dollars are headed in to the tune of $1M in licensing fees. TPACs alternative financing allows the use of its account receivables based on the BTL contract to establish a credit line through EXIMs Work Capital Guarantee -- when for raw materials.
Projected Net Income
Q4 2016: $75,000
Yr 2017: $11,900,000
Yr 2018: $27,000,000
Yr 2019: $35,000,000
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CAPITALIZATION FROM EX-IM BRANK
Once solely a development stage company, TPAC now has established itself as a licensee and service level agreement provider and exporter. Now having a consistent source of revenue that is adequate to cover its operating costs and facilitate to continue as a going concern, TPAC still finds it necessary for to raise additional funds to cover operating losses. Nevertheless, in the past, TPAC has proved its ability to raise adequate funds to mitigate this risk through private placements. Reconstruction efforts will replace the private placement with financing options such as a Working Capital Loan Guarantee from EXIM hence China’s Sovereign Guarantee Loan Program (SGLP) or any of the new financial options that have become available during the evaluation period.
The Export-Import Bank of the United States (EXIM) is the official export credit agency of the United States. It empowers U.S. companies—large and small—to turn export opportunities into real sales that helps to maintain and create U.S. jobs and contribute to a stronger national economy. EXIM does not compete with the private sector, but rather provides export financing support that fills the gaps in trade financing. No transaction or firm is too small, 90 percent of EXIM transactions directly serve U.S. small businesses.
TPAC has made application for an $85M loan in the China Loan Guarantee Program.
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MARKET EXCHANGE UPGRADE
Currently, TPAC is listed on the OTC Pink exchange. It is the next level goal of TPAC to restore its presence on the OTCQB to the 2014 price of $0.05. TPAC strongly identifies with the mission of the OTCQB.
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RECENT FILINGS
2016 Q2 10Q: http://www.otcmarkets.com/edgar/GetFilingHtml...D=11453295
2016 Q1 10Q: http://www.otcmarkets.com/edgar/GetFilingHtml...D=11260925
2015 Yr 10K: http://www.otcmarkets.com/edgar/GetFilingHtml...D=11182429
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Contact
Website: http://www.transpacificaerospace.com
Twitter (Muse): https://twitter.com/TPACmuse
Twitter (CEO): https://twitter.com/TPACbearings
E-Mail (IR): IR@Tpacbearings.com