RE: off topic to GORDO
Gordo, as a final note on VMI. I believe there is hidden value (note 4. in 1998 AR) in VMI as it sold 54.6% of I-Knowledge for $6M in treasury shares. No gain was recorded at time of sale.
" 4. Long-term investment:
Effective March 1, 1998, the Company transferred the Nereus multimedia publishing
software assets and liabilities included in its product development and distribution
segment to a new wholly-owned subsidiary, Nereus Technologies, Inc., subsequently
renamed iKnowledge, Inc. Following the transfer, unrelated third parties purchased
a 54.55% interest in iKnowledge, Inc. by subscribing for $6,000,000 of treasury
shares in iKnowledge, Inc. Each of the Company and the unrelated third parties
are shareholders of the same class of shares issued by iKnowledge, Inc. and are
subject to a shareholders? agreement.
The long-term investment was originally recorded at $494,770, being the
Company?s carrying value of the capital assets transferred on March 1, 1998.
As at January 31, 1999, the Company continues to record this investment at the
original value. Management did not record a gain on the disposition of the interest
in the net assets because iKnowledge, Inc. is considered to be a development stage
enterprise and near term earnings therefrom are not determinable."
What is your take on this?
TIA |
