Command Center, an emerging provider of reliable, on-demand labor solutions, has received $2 million in financing in exchange for a promissory note and warrants issued to Sonoran Pacific Resources, LLP. This transaction is similar to the transaction between the two companies in early 2007.
According to the terms of the contract, Sonoran Pacific Resources will be issued three-year warrants for 1,000,000 shares of Command’s common stock, convertible at $.45 per share. The funds will be used to provide working capital for the company’s expanding work base, which comes from its core labor solutions business as well as its participation in disaster relief activities currently underway in Iowa. Since the company provides labor employees, the need for Command’s services is expected to expand along with flood recovery efforts in states affected by the recent floods. This demand for services is one the company hopes will improve operating results during the second half of the year.
According to Glenn Welstad, Command’s chairman and CEO, “The past few months have required some very tough decisions by management. The assimilation of former franchise operations into Command Center required us to make certain changes in field personnel and, at the same time, close underperforming offices to move us toward our goal of executing a business strategy in which every branch store contributes to profitability.
He continued to state, “The current store base forms the nucleus of a strong and stable company going forward. This $2 million short-term loan will allow us to better manage our daily cash flow requirements and facilitate the rapid and efficient assignment of workers in Iowa and in other areas where demand for our services is increasing.”
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