Information Management Associates - (IMAA) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Information Management Associates - (IMAA)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: TheLineMan who wrote (39)	8/20/1999 10:10:00 PM
From: TheLineMan	of 165

Let me put things right it seems to be a low risk deal for CMGI. I was trying to visualize things - presuming that the stock stays at $10. It helps me think - even though the scenarios are unlikely. 1) If CMGI exercise their warrants and sell their shares and redeem the $10 mil in buyingedge they have $15 mil in profits, and their original $10 mil. IMAA wil own 95% of buyingedge.com and will have $13 mil in cash by virtue of the warrants. IMAA wil be diluted by 20% (the extra 2.2 mil shares). 2)If CMGI exercises all the warrants the own 20% of IMAA and also own 44% of buyingedge.com (by virtue of there IMAA holdings) and show paper profits of $15 mil. 3)The investors can exercises the 660,000 warrants at $4 and sell for $4 million and still own 15% of IMAA and 40% of buying edge with paper profits of $11 million. IMAA is diluted by 7% but get $2.4 mil in cash. Don't ask me what I make of all this. I'm just noting that the excitement of CMGI investing also benefits them indirectly when the price of IMAA goes up (virtue of the warrants). As long as IMAA stays above $10 - their investment is a freebie.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next