Dow Jones 8589.07 14.81 1:10 pm PST, December 11, 2002  NASDAQ 1,396.52 +5.76 For info, visit access.smallcapnetwork.com S & P 500 904.94 +0.49 To be removed, please click here Russell 2000 393.88 +0.41 VOLUME 02: ISSUE 81 Trading Alert: ThinkPath Corporation (OTC BB: THTHF) Debt restructuring activities throughout a challenging 2002 at ThinkPath (OTC BB: THTHF) of Toronto-an engineering knowledge management company-culminated successfully Wednesday with the release of significant financing details--evidencing a turnaround, ongoing future viability and potential prosperity. At $.06, the shares were previously priced for bankruptcy. This will not be the case. With the clouds parting agressive investors should take a serious look at ThinkPath. The company, which IPO'd at $5.00 in 1999 on the NASDAQ, has brought in new financial partners, cut costs and reduced its debt by $1.5 million to position it for strong growth in 2003 and beyond. Today, just after the market closed, ThinkPath announced the completed arrangements (first announced in August 2002) to refinance it's debt. The company was in default with Bank One, it's previous creditor. As a result the market priced the stock for bankruptcy. Their debt was refinanced with Morrison Financial Services, and in the process the company enhanced its balance sheet through debt reduction by approximately $1.5 million, a one time gain which will show up in December quarterly results. In a separate but related transaction, ThinkPath also received and additional $800,000 through an equity financing from Bristol Investment which was used toward corporate debt settlement obligations. ThinkPath could receive up to $4 million from this financing, leaving the balance available for future initiatives and growth. ThinkPath's Business The company provides technology and engineering solutions in design, drafting, technical publishing, and e-learning. For example, the company provides the service of converting massive technical manuals used to maintain military equipment (fighter jets, tanks, etc) into small, portable electronic notebooks for field use. In addition, they help the military and other customers conduct e-learning seminars in remote locations. The bulk of their customers include the departments of defense in the United States and Canada and large multi national companies in the aerospace, automotive, and financial services industries. Their customer base includes the following: General Electric Lockheed Martin General Motors Ford General Dynamics CIBC Merrill Lynch Hewlett Packard Cummins Engines Bell Canada Look for the company to increase its engineering and design business in the defense sector with current customers such as Lockheed Martin, General Dynamics and Boeing. Defense spending is increasing considerably as the US gears up for a long term war on terrorism and potential conflict with Iraq. Market Value vs. Sales and Share Price- A Formula for Potential Appreciation The company's sales have declined from 2001, but they are still on track to achieve approximately $28 million in 2002. In the September quarter, ThinkPath achieved $6.7 million in sales, and were at $21.5 million through the first nine months of the year. Like many others, ThinkPath invested heavily in a flawed dot-com business model. Over the past year the company has unwound that side of its business, and is now positioned for a return to growth. In the process, ThinkPath recently announced it has reduced annual fixed cost by $5 million. Employees and offices have been reduced from 600 and 18 offices in March 2002 to a current leaner roster of 330 within 6 North American offices. According to their last SEC filing, there are currently 51.7 million shares issued and outstanding. With a market price of $.06, the stock market is valuing the entire company at $3.1 million, which seems ridiculously low as compared to annual revenues of about $28 million. As previously mentioned, the stock is currently priced for bankruptcy. You must assume the equity financing will result in additional shares being issued. Therefore, our value model is based on an estimate of 100 million shares issued and outstanding in the future, equating to a $6 million market value based on today's closing price. Nevertheless, as compared to about $28 million in annual sales and the threat of bankruptcy behind them, the stock should be entitled to appreciate significantly from current levels, especially when one considers the component of major defense related services in ThinkPath's business mix. The company is focusing most of its expansion efforts in the Defense arena. Short term (three to six months), we believe the stock could easily trade into the $.10 to $.15 range, and might even do so on the strength of this press release, representing potential price appreciation 66% to 100%. Longer term, a return to early 2001 levels of $1.50 when the stock was on the NASDAQ is possible, but will require outstanding corporate performance and better general market conditions. As with any $.06 stock, you should assume you could lose 100% of your invested capital, so this stock is only for the speculative end of your portfolio. ThinkPath has made enormous strides towards righting the ship with today's news, but has a ways to go to return to profitability. If the stock gaps up dramatically in tomorrow morning's trading as a result of today's news, please use a limit order to avoid paying too much and lining the pockets of an undeserving market maker with your hard earned money. Here is ThinkPath's Press Release, which came out just after the market closed today. You are the first to learn about this dramatic turn of events:   Press Release Source: Thinkpath Inc.   Thinkpath Completes Financing Arrangement Wednesday December 11, 4:01 pm ET  TORONTO--(BUSINESS WIRE)--Dec. 11, 2002--Thinkpath Inc., (OTCBB:THTHF - News), a market leader in Engineering Knowledge Management solutions, announced today that it has completed an arrangement with Morrison Financial Services Limited to provide the Company with a Cdn$4 million revolving financing facility. The initial advance under the facility was used to pay debt obligations to the Company's bank. This arrangement is crucial as it will take Thinkpath out of default with its bank and grant a forgiveness of approximately US$1.5 million in long-term debt, strengthening the Company's balance sheet.  In a separate but simultaneous transaction, Thinkpath announced today that it has raised US$800,000 in a convertible debt financing arrangement with a syndicate of investors led by Bristol Investment Fund, Ltd. The first stage of US$800,000 has been used towards debt settlement obligations and working capital. Further, the agreement will allow Thinkpath the opportunity to raise additional working capital in two more stages if necessary, up to a total of US$3 million.  About Thinkpath Inc.  Thinkpath (OTCBB:THTHF - News) is a global provider of technological solutions and services in engineering knowledge management including design, drafting, technical publishing, e-learning, technical training and staffing. Thinkpath enables corporations to reinvent themselves structurally; drive strategies of innovation, speed to market, globalization and focus in new and bold ways. We are experts in the aerospace, automotive, manufacturing and health care industries.  Headquartered in Toronto, Canada, Thinkpath has 330 employees in 6 offices across North America. Further information about the company, its services and products can be found at www.thinkpath.com.  Forward-looking Statements  This press release contains certain forward-looking statements regarding Thinkpath Inc., its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause Thinkpath's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by Thinkpath in this news release and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Thinkpath's business.  Contact:  Vantage Point Capital Deborah Bayne, 905/844-3748 or 800/580-4382 Email: vinfo@vantagepointcapital.com D I S C L A I M E R : The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. SmallCap Digest is not a registered investment advisor or broker-dealer. 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