Common use of Capital Needs Clause in Contracts

Capital Needs. As of the date hereof, the Company has only nominal capital with which to operate. The Company anticipates using funds from the sale of the Shares for working capital purposes and paying down pre-existing debt. There can be no assurance that the Company will be able to raise sufficient funds for these purposes or that such funds will be available on terms and conditions which will permit a reasonable rate of return to investors in the Company.