"What I am trying to accomplish is to send a message," he said Monday, complaining that while the technology looked good, "these guys never manage to generate any cash." He suggested that the established machine-tool business should be sold to a larger company and voiced hope that a company devoted to the new technology would excite investors.
Tenant, the chief executive, said he would be happy to entertain an offer for the machine-tool business. Over the years, he said, "We've had some interest, but never an offer."
Flow has announced layoffs to improve cash flow and is talking about a possible spin-off of the food business, adding that it would have more to say on that subject within a month. Talk of the spin-off is one thing that has helped the stock this year.
But while such a move might create a company that could appear promising to equity investors, it would need to raise even more capital if it were divorced from the machine-tool business. And the terms of financing it got from John Hancock show that in the current environment, capital can be very costly.
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