NRID owners pump $5 million into the company, announce name change to ESAF:
go2net.newsalert.com
This is an interesting announcement, and to me it implies that NRID management expects the company to be making money over the next couple of years, presumably from its Veridicom connection. There may be another shoe dropping here. Certainly, RMS doesn't need to add shares to gain control when it already controls a majority of shares.
The preferred stock is convertible into common at $1.39 per share, which is not dilutive, but as preferred does carry a 10% per year dividend, which is steep for a company that is losing money. Of course, if NRID went belly up in two years, even a 10% dividend doesn't help very much.
This is a surprise, frankly, and I expect to see the explanation appear shortly in the form of some significant SAF-related deal. Otherwise, it is just good money after bad for RMS, and I don't believe they operate that way. |
