Chris,
UPDATE ON PROGRESS
I spoke with a company officer at CVIA this morning about the progress on the acquisition of TEXAS VIDEO. He gave me a detailed update on why the process has taken so long to this point and what is planned over the coming weeks.
1) Yes, part of the funding for the acquisition is already in. It is coming in 3 phases (actually from 3 separate investors, but all 3 investors are working with the same funding group). The first deal is complete and the money is in CVIA's bank account.
The second is in the final stages of documentation preparation at the attorney's office. There is really nothing holding it up. It has been delayed as a result of attorneys meticulous and repeated attention to final wording. That part is expected to be completed at any moment (perhaps today or in the next few days anyway, depending on how quickly the attorneys get it done).
The third phase (assuming it follows the same time table as the first and second) is expected to be in the bank probably in the next 2 weeks or so. The question is simply how long the attorneys take in reviewing the paperwork.
2) To close on the deal with TEXAS VIDEO should take only a couple of weeks after receipt of the funds because everything is essentially done in preparation for this acquisition.
3) The acquisition of LIGHT INTERTAINMENT is still in the works. It looks favorable at this point, but the focus right now is on getting the deal done with TEXAS VIDEO.
MY CONCLUSIONS FROM OUR CONVERSATION:
A. The whole funding package has been approved... just tending to details of the paperwork.
B. I would estimate that the money will be in hand... let's say 2-3 weeks to be on the safe side. Probably around April 1-10.
C. I figure the deal with TEXAS VIDEO will probably close mid to late April.
I'll let you know how things progress as I find out. If you have any questions, you can also call CVIA at 1-800-720-2842. Vicki can help with most things. But if there is anything she can't answer, she will have the appropriate individual return your call. They are busy, but they have been very cordial and helpful. To try to keep their time on the phone as minimal as possible (since they do have other things to do besides just answer investor phone calls), I have tried to have my questions well prepared and to the point.
They are a small, but growing company. I had been concerned because of the delays with the TEXAS VIDEO deal, but looks like it's a "go!" I have been quite pleased with their responsiveness. This stock is starting to get very interesting again!
Also, they said the Annual Audit is not finished yet, but my understanding is that revenues for the 4th Quarter were comparable to the 3rd Quarter, which would put the Full Year at around $1 million. Of course, that is substantially larger than 95.
By adding TEXAS VIDEO (additional $3-4 million and profitable) and whatever they add with LIGHT INTERTAINMENT (which, I understand is also currently profitable), 1997 could be very good. I will post more info as soon as I hear back from CVIA on it.
Later,
Brad |
