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Daniels
Corporate Advisory Company, Inc. (OTC: DCAC) is a corporate
strategy firm servicing the needs of early-stage public and private companies.
From aiding in securing growth capital for down payments to implement LBO
strategies for a client, to the placement of senior-level team members, DCAC
aims to provide clients with unique strategies designed to accelerate growth in
optimum market niches through joint-ventures, marketing opportunities,
partnerships, and potential acquisitions.
As
clients are incubated as subsidiaries, DCAC world-class
senior-management teams and the best go-to-market strategies are provided.
Candidate companies are placed on a fast track to significant potential
sales and earning power.
DCAC finances client growth with capital raised from
the sale of DCAC registered common stock until the time when the
incubated company is viable, profitable, revenue-generating, and entirely
self-sufficient, capable of being an independent public entity through spin-off
or by other alternative means.
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On
November 23rd DCAC" announced that a private in-house
funding source has indirectly been established through the issuance of
115,000,000 shares of 144 stock. The shares have been issued to the
senior oversight executives and operations executive management of DCAC
and its subsidiary Payless Truckers, Inc. Shares have also been issued to the
principals of a Think Tank and to financial advisory professionals committed to
fundraising.
Over
the next six months, every available source of capital will be pursed and
closed, even the most expensive forms. The objective is and always has
been for the rapid expansion of the DCAC high earning rental fleet and
the use of its monthly generated cash flows for financing internal
growth. The funds that are raised and eventually repaid through the
trading activity of DCAC common stock (and not by a drain on the
internal cash flows) will be leveraged with Term Loans from an institution and
private high-net-worth loan money investors (without equity issuance)
DCAC expectations for the dollars raised from its Reg A
equity offering at the beginning of the new year remain conservative. Even
at the company’s lower estimate, the use of additional draw down amounts from
Term Loan money will provide a leveraged capital base that could still help
toward attaining success in the first growth stage of Payless Truckers,
Inc. The success of this initial stage brings the DCAC fleet size
to 100 trucks generating a projected monthly Gross Rental of
$325,000. Over a 12 month period this should produce Gross Rental Income
of $3,900,000. These projections, to be included and updated to actual
results as the company advances in the Reg A fundraising process, should
produce a fair market multiple that establishes a stock price range which makes
the distribution of the DCAC Offering interesting to those
market-makers/broker dealers that normally participate in quality Reg A Offerings. One
of the main uses of the Offering Proceeds will be the reduction of the most
expensive types of financing taken earlier.
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On
November 4th DCAC announced that it is under contract to a
major mid-market venture firm for the management of a capital event that may
contribute significantly to the growth of its Payless Truckers, Inc.
subsidiary. The collective efforts of DCAC management, the venture firm
and two non-affiliates should improve dynamics of liquidity DCAC stock
and working capital levels. By calendar yearend a Reg A Offering with raise
estimates of between $3 - $5 Million in common stock should be cleared by the
SEC with initial equity committed to truck acquisitions by mid- January 2021.
Through
Institutions, DCAC is projecting greater truck capacity by
leveraging the equity raise through the use of a Term Loan facility. This
facility is to be provided by another highly regarded financial institution in
the initial amount of $850,000 with potential to $1,500,000 in the short term.
This first phase of leveraged for growth is without the use of dilutive
convertible financing. It has the potential to start adding 40 additional heavy
rental cabs the DCAC fleet by January 2021. Over the next six to eight
months gross rental income from institutional leverage is projected at $130,000
per month. Subsequent financing options have been discussed and possible to $5
Million.
Private
Investor Loans to DCDC continue to buoy current results. Private
loan debt has increased the fleet from eight to twelve trucks with two more
committed additions. By November’s end, DCAC monthly gross rental income
on the fourteen trucks reached between $40,000 - $48,000. This range allows for
10% down time and administrative expenses. On a run rate basis, yearly gross
rental income is projected between $480,000 and $576,000 which is tax-sheltered
by the company’s NOL (tax loss carryforward) This is a doubling of the DCAC
fleet size and monthly gross rental income since the last SEC Filing.
For
more information on DCAC Daniels Corporate Advisory Company, Inc. visit:
http://www.danielscorporateadvisoryco.com/
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