What am I missing from the following news release? Is my math wrong? If MCTL owns 8.9 Million shares of HYCP (trading at about 1 1/2 today, 9/9/99.) then the market is valuing MCTL shares in HYCP at over 13 Million, or 4 times MCTL's market cap. Yet HYCP is only a small portion of MCTL's business. If we get close to the market price for these shares then MCTL can pretty much retire all of it's outstanding notes and long term debt.
I do note that the purchase price was not disclosed, and that HYCP was down today, so maybe the purchase price will not be as high as we would hope.
MicroTel Sells Its HyComp Inc. Common Stock
ONTARIO, Calif.--(BUSINESS WIRE)--Aug. 17, 1999--MicroTel International Inc. (OTC BB: MCTL) ("MicroTel")
Tuesday announced that it has signed an agreement in principle to sell its common shareholding in HyComp Inc. (OTC BB:
HYCP) for an undisclosed amount of cash to an investor group including John G. Simmonds and other private investors.
MicroTel owns 8,889,798 common shares of HyComp Inc., or approximately 88 percent of the currently issued and
outstanding common shares.
The completion of the sale is conditioned upon the acquisition of eieiHome.com Inc. ("eieiHome") by HyComp Inc. from
Simmonds Capital Limited. This acquisition is expected to be completed on or about Sept. 30, 1999.
eieiHome, a wholly owned subsidiary of Simmonds Capital Limited operates an Internet service and information site, providing
information and related services for homeowners, home buyers and home service providers. Simmonds is the chief executive
officer of Simmonds Capital Limited.
The statements in this press release relating to matters that are not historical are forward-looking statements which involve risks
and uncertainties including, without limitation, economic and competitive conditions in the markets served by the Company
affecting the demand for the Company's products, product pricing, market acceptance, access to distribution channels and
other risks detailed from time to time in the Company's Securities and Exchange Commission filings. These risks could cause
actual results to differ materially from those anticipated or described herein. |
