89,000,000 EGLO to be outstanding - from 8K SEC filing.
From the Acquisition Section of recent EGLO SEC 8-K filing we get a strong hint at the extent of dilution from warrants, options, etc. and total outstanding shares to exist when merger completed:
freeedgar.com
"Under the merger agreement, assuming no dissenters, shares of TGC common stock will be converted in the aggregate into the right to receive 40,000,000 shares of eGlobe common stock, plus cash to be paid in lieu of fractional shares. Each share of TGC common stock outstanding immediately prior
to the effective time of the merger, assuming no dissenters, would be converted into the right to receive a number of shares of eGlobe Common Stock equal to 40,000,000 divided by the total number of shares of TGC Common Stock outstanding immediately prior to the effective time (the "Exchange Ratio"). The shares of eGlobe common stock held by eGlobe stockholders immediately prior to the merger
will remain unchanged by the merger. Upon completion o f the merger, former TGC stockholders will hold approximately 45% of the shares of eGlobe outstanding on a fully diluted basis, assuming the conversion of outstanding preferred stock and options and warrants."
So, if TGC is to receive 40,000,000 shares and this holding will represent approximately 45% of total outstanding, then total fully diluted outstanding will be 89,000,000 shares. So at a share price of $10, EGLO market cap will be $890,000,000. At the target price of 15, the market cap is approx. $1.3Billion.
What I am still trying to figure out: how much more red ink these mergers add to the analyst forecasts, where EGLO is expected by same Kaufman analyst who put out strong buy yesterday to be in the red for at least next 5 years:
Mar 2000 -0.31
Mar 2001 -0.335
Mar 2002 -0.5
Mar 2003 -0.3
Mar 2004 -0.06
earnings.nasdaq-amex.com
Perhaps analyst put out pump PR yesterday to get some of that dilution converted at a higher price ... Nah, can't be LOL! |
