More family ties. One of the investors in the Private Placement was Manhattan West, a company that is apparently involved in the financial services industry. (Manhattan West later divested its private placement warrants because of concerns raised by the NASD at the time of the IPO). The prospectus identifies Tariq Kahn as the sole officer and director of Manhattan West. At the time of the offering, his sister, Saikma Khan was the President of Mirage’s wholly owned subsidiary, Mirage Collection, Inc. Mr. Khan’s mother and father were among the selling shareholders at the time of the Mirage IPO.
The relationship between Mirage and Manhattan West did not end there. On February 13, 1997, Manhattan West entered into an agreement to provide business and consulting services to the Company. Its compensation? Mirage would pay Manhattan West’s expenses. Less than two weeks later, on February 26, 1997, Manhattan West loaned $46,997 to the Company and received a promissory note which it could choose to convert into shares of the Company’s common stock at $.50 per share -- that’s 93,994 shares. Based upon the IPO price of $5.15 those shares would be valued at $242,034.55. That makes for quite a nice return.
One thing more. Aica Ghauri, wife of the Company’s President, Najeeb Ghauri, is employed by Manhattan West.
According to the prospectus, most of the proceeds from the offering, between $1,037,675 and $2,214,000, would be used to develop the Company’s fashion business. Of the balance, $147,343 to $365,894 (16.3% of the net proceeds) was earmarked for expanding the Company’s participation in the software industry and a like amount was allocated to market research to determine the viability of entering the entertainment industry.
Stock Patrol - Netsol International: An Oasis on the Horizon, Or Just Another Mirage?
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