Restaurant Teams International, Inc.-RTIN Message Board

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Microcap & Penny Stocks : Restaurant Teams International, Inc.-RTIN

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To: Howard C. who wrote (3128)	4/15/2000 12:50:00 AM
From: Lee Walsh	Read Replies (1) of 3351

I am copying my RB post here. RTIN had two ways to go on this deal....IMO 1) Do a deal with someone with no restaurant experience...or a bank....a debt deal or a share deal....and raise the money that way..... Details: We would own 100%...except we would owe the bank or the dealmaker...who would "really" own the other part... We would have to find someone with great MGMT skills to run it....which would really cost us. What kind of partner would this kind of person be...would they have any interest whether or not we succeeded ..or would they just be trying as quickly as possible to get their investment back.... Similar to a debenture deal..IMO. How many shares would we have had to issued for a deal like this...or how much debt would we have had to incur?? A lot I would say. or 2) Do a Joint Venture deal. Details: They are a "market parnter"....So it is in their BEST interest that this is very successful as they have put up a lot of the money. IMO they have the Mgmt team in place (I am betting we will hear more about this later) We incur no debt....No dilution to RTIN stock....We have operational capital. IMO they will probably be "mgmt in charge" And I feel we all think we need some very experienced "franchise" type MGMT to run this show....Hopefully we will get details on this soon. New stock in "newco" This has to mean only one thing....Spinoff.... question is...."where" and "how many"...I may not be reading this right, but I believe I am.....the way I see it, this JD enterprises will probably be the "insiders" in the "newco".....and we will own the float......if it's a 1/3 by 2/3 split...and if the "newco" has 18M shares OS...we (the RTIN shareholders) would control 6M shares. OK....now...How is anyone else going to invest in this "new venture".....You can bet that they cannot "buy in" to the insider's shares....so the only way that anyone else is going to get to participate in this "newco" is by buying RTIN stock. The details I want to hear are....what's the spinoff ratio....will it be 1 for 3 or 1 for 2....it doesn't really matter.... 1 for 3 would mean about 4M shares float and a 12M OS in Newco... 1 for 2 would mean about 6M float and 18M OS in Newco.... Now...just assuming....this deal is done...and the fire is lit...we announce 200 to 400 franchise deals.... We announce an IPO on the Nasdaq for "newco".... If you have 50,000 shares of RTIN and (just to make the math easy) It's a 1 for 2 deal..... You will have 25000 shares of "newco"....How would $5 or $10 a share for "newco" sound for an IPO for anyone??? KREM is still about $40 I like this deal much better than a debt deal.....or a debenture deal... Details we need.... 1) Just how many shares of this "newco" do we get?? 2) What are their plans for "newco"?? 3) Just who is this JD Enterprises?? What is their background?....I feel this is VERY important... 4) How soon will all this take place?? I like these kinds of deals. Lets do about 10 more :) Finally...I think "newco" is just a symbolic name....Hopefully they will come up with something better... Lee

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