""I do agree with this line of thinking. It seems like they are putting the cart before the horse. But, look at the press releases, they are doing things much more quickly now""
Well Trader, things may be quicker, but are they clearer?
The news release that Cima thoughtfully posted today contains the following:
July 1, 1999--Viking Capital Group, Inc. (OTC BB:VGCP) announced today an extension to its strategic plan to purchase insurance
companies. Companies bought by Viking will be permitted to take a position in the common stock of Viking Capital Group as part of their portfolio of insurance managed assets. Such stock would be purchased in the open market.
This program - to be formalized after the purchase of Viking's first insurance company - will allow acquired companies to invest in Viking as the Company completes its insurance company acquisition program and launches services through its subsidiaries, such as the bankers service bureau.
In the 10 kSB, filed March 31, 1999 the plan was to complete: a private placement of debt and/or equity or a public offering
I would appreciate it if you would correct me here if I have misunderstood, but it would appear that the plan is to issue shares or debt, up to a value of $250,000,000 in order to buy insurance companies. In turn, the insurance companies will be allowed to place part of their investments in shares of VGCP.
The thinking would appear to be that an investment in VGCP would be far better than other investments that would be available.
Given the obvious difficulty and risk, of raising such a large amount of capital, perhaps they should borrow less and skip a step. |
