In To.....Basically "It's" a Hedge Fund specific t
Post# of 22940
If the SLA for a Firm is set at $1 Mil by TPAC, depending on the Firm and as a payment option, TPAC may offer to accept a portion of the payment in the Licensee's Stock, (They must have a Public Liquid Tradeable Asset ...eg. stock). TPAC now has a further asset to generate revenues from at will thereby increasing the actual $1Mil payment by any additional revenue from trading the Licensee's Firm's Stock.
If TPAC recieved $1 Mil for an SLA...That's Great...!!!!..but the payment is Settled and done. However if TPAC received ..say...$850k and 15% (150k) in stock then TPAC has the ability to Leverage the 15% in stock for returns exceeding the stock Value, (150k +)......Well the Stock has to increase in value for that to work....???
Yes the Stock Does have to increase for Additional Revenue...!!!!.....If you have a Firm that annually does say 500k in business and they are Manufacturing / Re-Selling / Distributing TPAC Products creating say an Additional $200k in Revenue from TPAC Orders......Their Stock IS Going to go Up...!!!!!
So remember Not only is TPAC getting the Initial $1 Mil from SLA, but we are also getting Any increased value in their stock Which is created by their affiliation and or production for TPAC.....Plus depending on the "Terms" of the Agreement....TPAC Also generates continued Significant Revenue just from the Licensee's Production or Re-sale.
So in Essence....TPAC is Responsible for Licensee's Increase in Revenue by Association and Affiliation of a NAVAIR Certified TPAC.
Algorithm's aren't perfect...But it's a good fail-safe for Trading......Wonder if We can Borrow It...!!!!!!!!!!!!!!!!!!!!!!