FIRAMADA (FAMH) - New 2-19-1998 - RESEARCH Posts ONLY! Message Board

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Microcap & Penny Stocks : FIRAMADA (FAMH) - New 2-19-1998 - RESEARCH Posts ONLY!

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To: Brad who wrote ()	4/3/1998 5:41:00 PM
From: Brad	Read Replies (1) of 65

Here's a "Detailed Summary" of the Conference Call of 3-3-98 for anyone that missed it... Conference Call 4-3-98 Ira Monas, Pres FAMH MYRIAD UPDATE- FAMH signed a collateral agreement with the IRS. This is a Letter of Credit to guarantee payments to IRS. Myriad owed $11 million in back taxes. Ira negotiated this down to $4.5 million total to be paid as follows: $1 million cash at closing, the balance of $3.5 million in payments. As a result of this, some stock that was going to be used for closing will NOT have to be used so it will be cancelled. This will bring down the total shares outstanding. FAMH is essentially buying the business (Myriad) from the IRS. Principals of Myriad are not getting any cash, just an employment agreement. Myriad's number of leased employees has increased from about 5000 up to about 6500. And there are other leasing agreements pending. Those companies have been on the sidelines waiting for the outcome of the IRS deal. Ira signed the agreement yesterday with the IRS. The agreement is at legal counsel now. The IRS had submitted changes and Ira agreed to those changes and has now signed that agreement. That agreement will then go to the bank for the LC which will take about 3 days. Then they will be ready to sign and close the deal. ATXI POINTS - Atrix has $4 million in hard assets, of which $1.6 million is cash. Atrix has 1.4 million shares outstanding. About 30% are controlled by insiders. FAMH bought 5.09% to get a foothold in the company. After some maneuvering last week, all the issues have been resolved. FAMH attorney says they have agreed to last issue - It was a "Standstill Agreement" that FAMH didn't want. That was changed late last night. The LOI (Letter of Intent) is being sent to FAMH attorney's office today. This basically means a NASDAQ listing for FAMH. The technical process goes like this: 1. ATXI buys the assets of FAMH. 2. ATXI Board resigns and FAMH takes over. The old FAMH remains as an operating shell. No additional NASDAQ listing to go through except merger approval. Ira Monas and Arif Adam will remain "in charge." The old ATXI Board will not even have a seat on the board. They get warrants. Down the road they can make money on the stock, but they will have nothing to say. FAMH will probably sell off the assets of Atrix because it is a totally unrelated business. This would add $3 million in cash right off the bat. UPDATE on OTHER ITEMS - 1. Signed agreement to purchase Warren Temps - high end banquet staffing company. 2. FAMH has 2 other small acquisitions they are trying to work on Monday. They are in Phoenix, AZ and Hartford, CT. 3. The IT Division in Phoenix has at least 50 high end placement orders now. Going well. PAYROLL FINANCING - Factoring Staffing companies run their invoices through a "Factoring Company." Current rates from factoring companies run about 4.5-5% plus an interest rate. FAMH Factoring (Payroll Financing) only charges 3.5% and NO interest rate. FAMH brokers factoring to other companies - almost pure profit. Very low overhead. Workman's Comp Insurance With workman's comp insurance and employee benefits programs, staffing companies make money on the spread by bulk buying. So FAMH has developed an "Offshore captive" that allows them to get workman's comp insurance costs at $1.65 per $100 payroll regardless of the job. It's re-insured. FAMH then re-sells this coverage to companies at $4-7 & up per $100 of payroll. Great profits. Many major staffing companies have problems with workman's comp coverage. FAMH has over $100 million in workman's comp billings to put thru their offshore captive and make $2-3 per $100. Very little expense. Very profitable. CLOSING Ira & Arif working hard to enhance shareholder value. For a replay of this conference call, dial 1-800-222-9751 ========================================================= Hope this helps. Best wishes, Brad

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