Patron, when I saw this release, something did not ring true. A BB company with a joke of a web site paying over $11M for another etailer!?
<<Sitestar offers to buy Mothernature.com for $11.36 mln
NEW YORK, Aug 25 (Reuters) - Internet holding company Sitestar Corp. (OTC BB:SYTE.OB - news) on Friday said it has
offered to buy Web health products retailer Mothernature.com Inc. (NasdaqNM:MTHR - news) for 75 cents a share, or about
$11.36 million.
Shares of Mothernature.com were up 19 cents, trading at 69 cents a share on the Nasdaq stock market. Sitestar shares, which are traded on the over-the-counter bulletin board, were up about 9 cents, trading at 39 cents a share.
Mothernature.com, based in Concord, Mass., did not immediately return calls for comment on the deal. The purchase offer came less than a year after the company's December 1999 initial public offering, which suffered a rather wintry reception from investors.
The company priced 4.1 million shares at $13 a share, raising about $53.3 million, but saw its share price drop on its first day of trading. Since then Mothernature.com
has struggled to pull itself out of the red.
Sitestar said its offer for Mothernature.com shares would not be subject to financing, or a lengthy due-diligence process, and would only contain a condition that Sitestar
could pull out of the deal in the event of any ``material adverse change'' regarding Mothernature.com.
The Encino, Calif.-based Sitestar said it asked the management of Mothernature.com to extend Sitestar its full support by approving the purchase of the shares. The
offer also included a $500,000 break-up fee in the event that management decided to auction off Mothernature.com to other interested parties.
``We see tremendous value in Mothernature.com and are prepared to make a tender offer for all of the shares at a significant premium to the market,'' Clinton Sallee,
president and chief executive of Sitestar.
``Mothernature.com is highly attractive from both a strategic and financial perspective,'' Sallee said. ``Their Internet assets and brand value have long-term growth
potential. The company's strong balance sheet is equally appealing.''>>
This is the BB company's site:
sitestar.com
Mother is sitting on $29.7M cash with $5.1M in total liabilities as of June 30th. Their burn rate is over $8.5M per QUARTER.
What is going on here? Are they trying to get the company to raid the cash? Anyway, just thought you might find it interesting. |
