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Microcap & Penny Stocks : RNTK and FAMH, both companies lost the war!
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To: Andrew H who wrote (84)2/26/1998 4:58:00 AM
From: JIN CHUN   of 110
 
I finally had to break down and respond to this one.
The debt assumption and interest, etc., is marginal at best. It is my understanding that the maintenance costs on the debt assumption was minimal and easily absorbed by the operational profits of Myriad. Please don't say that the maintenance costs will eat up Myriad's margins. Once again, the maintenance costs are minimal. (Pre-emptive strike).

Also, it was my understanding that cash was already on hand for the debt assumption. I might be wrong, but I remember clearly being told that the costs for the Myriad transaction was being paid by funds already in the cash reserves.

Any issuance of stock for capital needed for the NYC transaction would, IMO, be minimal and restricted. The NYC company is small, something around 1MM in sales, and only considered because of it's niche ability and firm relationship with some bigger clients.
I'm sure that there is also plenty of cash reserves on hand. I was told that issuing more shores would only be done in an effort to maintain cash reserves. In any event, the percentage of dilution is easily offset by the addition in revenue. So far, we have had 2.5MM shares for Myriad for 1.8MM net in '97. (Don't make me go over the Myriad net figures again, please!).

Jin.
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