Summary of Special Meeting
Posted by chanelle at Stockhouse.com. Originally posted at www.kainvestments.com.
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March 10, 11:30AM
Club members not in attendance and fellow investors, four KA Investments exec members were in attendance this morning at the JDX special meeting, below are some of the points made. This recollection of the meeting is intended primarily to keep memebers of KA Investments up to date and should be not relied upon for investments decisions. Any other questions can be emailed to info@kainvestments.com Please excuse the sloppy presentation. Later, jack
General- CEO William Staudt did most of the talking, in attendance were about 25 shareholders, and 4-5 JDX guys. Looking at the appearance of many of the shareholders I would suspect they have been holding them since the mining days. All notions were passed without much discussion. JDX be trading as ITE buy next wed or thurs. They are continously looking at deals and they are planning to have a constant stream of them come out. They are currently only looking at US deals through their two strategic partners. No words on when the next one will be but I imagine soon. They were very close to go in a wireless deal but pulled out in the final stages. AGM will be in Toronto in April.
Medsite- confirmed they have 222,000 convertible preferred shares. Mr. Staudt seemed very impressed with the company as he discussed their business plan, and compared their numbers with a comparible co. in the states thats mkt cap of 3.2B but revenues only a fraction of Medsite. Medsite will being going public in April and ITE's shares are locked up for 6 months, at that time they will determine if they'll sell the shares or hold on. Medsite is also planning to expand into Asia and Europe.
Enviromation- what a steal!! Will pay 1.6M over a couple years for a company that is growing and had 1999 revenue of roughly 3.5M and pretax profit of 500K sounds good. Mr. Staudt explained that they found them over the internet, and was a case of being in the right place at the right time. Company has 23-26 employees and was owned by three individuals who are still with the company as employees. ITE has big plans for this company and they paln to really develop and expand it. Can't wait. As a fact of interest, as Keith Massey and others assumed the lisitng requirements of the TSE played a 'fundamental role' in the purchase of Enviromation.
Cash/Investments- They currently have approx 10M on hand and 4M committed leaving 6M for future deals. They acknowledge that more cash is needed if they are to achieve a continuos deal flow. They said that they are actively working on this (I expect it could be any time). In talking with a few of us after the meeting I got the impression that they will likely be doing this through private placement, in the range of 15-20M. Keeping in mind that in seven months as locked up periods are expiring they'll have another source of cash. They mentioned their mining sites and that once their main one goes into production they will consider selling their stake (don't get too excited it is pretty small). One shareholder voiced his opinion and said the proceeds should be dividended out, KA dosen't feel that would be in the shareholder's interest. As for a Nasdaq listing it seems that is something they are obviously looking into however they said the listing requirements are still be examined so guys I wouldn't expect anything too soon.
Thats the scoop according to jack, sit back and enjoy. Please note I'm going by memory and sloppy notes, so take this as general information and read our disclaimer. Later, jack
Latest Prices (March 9 2000)
JDX.TO $3.65 - iTech Capital Corp (Jordex)*
QBX.CN $1.72 - Cubix Investments
PRTE.OB $6 1/8 - Presidents Telecom
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