Kerry,
Two comments, and a question:
When ancr shares touched $41 in '96, there were, according to
the annual report, approximately 10 million shares outstanding,
giving the co. a $410 million market cap. Today, there are
24 million shares outstanding, and in-the-money options and
warrants for several million more. If we just call it 25 million
shares to be conservative, priced at $17.50, we have a market
cap of $437 million. Therefore, at the current
price, the euphoria for ancr has actually exceeded the peek of
'96.
If Ancor receives $100.5 million of revenue from Sun (I'm using
the $67 from the press release and multiplying by the max. no.
of shares tha can be issued), it has
agreed to issue 1.5 million shares at $7.50 to Sun. At
todays stock price of $17.50, this would represent a $15 million
profit to Sun. If my calculations are correct, this seems to
be a very large motivation for Sun to deal with Ancor (that
profit to Sun would multiply to $26 million if ancr shares
average $25 by the time Sun is fully vested)
Question: Why was there no value in terms of potential sales
numbers mentioned in the press release re: Sun OEM agreement?
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