According to my financial figures the company as of Jan 6/2000 has:
Cash - $26,500,000 ($28,250,000 after financing closes)
Stock investments - $22,500,000
50% ownership in the Natural Gas Gathering System - $6,000,000
Other properties, plants and equipment - $3,000,000
Total Liabilities - $1,500,000
Total Assets = ~$59-60,000,000
Shares issued - 35,163,741
Warrants – 4,350,000 at $1.78 that expire April 1/2000
Options – 990,000 at prices $1.79-2.40
This results in QBX having approximately $1.65/share in assets and .76/share in cash.
The value of the investments is based on closing prices as of Jan 6/2000
1,250,000 shares of PN (NYSE) at $8.13US = $15,000,000Cdn
325,000 shares of UBRT (NASDAQ) at $4.63US = $1,500,000Cdn
750,000 shares of CLP (CNDX) at $1.85Cdn = $1,400,000Cdn
80,000 shares of ONT (NYSE) at $28.25US = $3,400,000Cdn
24,000 warrants ($12.88) of ONT (NYSE) at $28.25US = $540,000Cdn
2,000,000 shares of GNI (CNDX) at $.40Cdn = $800,000Cdn
Note: ($1U.S = $1.47Cdn)
The company presently has revenues of approximately $1 Million/year from the Bird Canyon Natural Gas Gathering System which more than covers the current burn rate of $75,000/month.
It could be misleading to look at the current quarter ending Sept 30/99 to quickly figure out the company's assets.
According to the Sept 30/99 quarter report the company had
Cash $2,730,661U.S = $4,020,000Cdn
Account receivable and Certificate of Deposit $159,285 U.S = $233,000Cdn
Properties, plant and equipment $6,005,120 U.S = $8,820,000Cdn
Investments $16,834,281 U.S = $24,600,000Cdn
Current Liabilities $1,033,693U.S = $1,510,000Cdn
So as of Sept 30/99 total assets were $38,000,000Cdn.
When UPH was spun off in November it was given 11.7 million shares of UP (TSE) which was $1.50 on Sept 30/99 along with $300,000 cash. So anyone doing a very quick calculation might think QBX has $20-30 million in assets once they did the UPH spin-off and not the current $58 million the hold.
This is largely the result of the investments being carried at the original investment value and not the current value.
Since Sept 30/99 QBX has performed several transactions:
Oct 21/99 sold 1,250,000 shares of PN (NYSE) at $11.125US = $20,440,000Cdn
Nov 24/99 sold 150,000 shares of ONT (NYSE) at $13.80US = $3,050,000Cdn
Dec 21/99 sold 50,000 shares of ONT (NYSE) at $25.00US = $1,837,000
Nov 24/99 bought 750,000 shares of CLP at .60Cdn = $450,000
Dec 21/99 bought 2,000,0000 shares of GNI at .27Cdn = $540,000
Dec 24/99 bought 80,000 shares of ONT (NYSE) at $12.88US = $1,514,000Cdn
(24,000 attached warrants)
Total cash gained from sale of investments since Sept 30/99 - $25,300,000
Total cash used for investments since Sept 30/99 - $2,500,000
Cash provided to UPH during the spin off - $300,000
Best Regards
KEITH |
