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Ø Clients Incubated as Subsidiaries, Fast Track to Earnings.
Ø Ability to Secure Growth Capital for Client LBO Strategies.
Ø DCAC Receives Shares in Client Company as it Goes Public.
Ø Trucking Subsidiary Currently Profitable and Growing Revenues.
Ø Recent Internal Loans Allowing for Significant Expansion of Truck Fleet.
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.
Ø DCAC Increases Capitalization For (a) Creation of Lower Cost External Financing (b) Creation of Internal Options
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.
Ø Significant Expansion of the Rental Truck Fleet of Payless Truckers Subsidiary
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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