Gum Tech announced today that they retained the services of Credit Suisse First Boston. I don't have a lot of time to write at the moment, so I'm going to copy some material from another poster on Yahoo as to the potential significance of this deal.
From gumminator on Yahoo:
CSFB is a mega corporation. They are very diversified within the financial services sector. They are a bank, but the scope and breadth of their services goes way beyond that.
1) They cover and analyze stocks. Their opinion is held in fairly high regard in the investment world. They COULD initiate coverage on GUMM and that would be HUGE!!
2) They develop business plans for organizations such as GUMM. They help coordinate marketing, positioning, finances, etc...
3) They help facilitate mergers and acquisitions if need be.
4) They advise corporations on debt management. They advise to the best ways to fund projects. They develop a strategy to increase capital....do we sell more stock, issue a corp bond, take out a loan...things like that.
5) They are international. They help corporations develop international plans.
This is a very "in a nut shell" answer. This is a big positive for GUMM. They can only make things better. Hope I helped. <end of gumminator's comments>
I would only add that CSFB is a well respected company worldwide, and they don't normally take small deals. They don't have to take small deals because the demand for their services is great enough where they turn down relationships that they distrust or are too small. They wouldn't risk their good reputation on a bad deal. Something big must be in the works for them to represent Gum Tech as their investment banker. This deal should bring more credibility to Gum Tech in the eyes of investors. Also, CSFB has a market making activity. It sure would be a big positive to see them make a market in GUMM. Their market maker ID is FBCO and they aren't shy about buying stock when something good is coming. CSFB represented Philips when they bought VLSI Technology last year, and they alone sat on the bid buying hundreds of thousands of shares about a week before the takeover was announced.
biz.yahoo.com
PHOENIX, Dec. 20 /PRNewswire/ -- Gum Tech International Inc., (Nasdaq: GUMM - news) announced today that it has retained the services of Credit Suisse First Boston Corporation as the Company's financial advisor.
``Forming the relationship with Credit Suisse First Boston is another significant milestone, as outlined at our Annual Meeting, in helping to position Gum Tech as a leader in the drug delivery technology industry,'' stated Gary Kehoe, President and Chief Operating Officer. ``Our partnership with Credit Suisse First Boston will help us implement future development plans.''
Gum Tech International, Inc. is an innovative nutrient and drug delivery technology company engaged in the development, manufacture and marketing of delivery systems for bioactive compounds. Gum Tech is the majority owner of Gel Tech LLC which markets Zicam(TM) Cold Remedy, a patented, revolutionary homeopathic remedy that significantly reduces the duration and severity of the common cold, and Zicam(TM) Allergy Relief, a homeopathic remedy designed to provide relief to allergy sufferers.
For additional information, please contact Lynn Romero, Manager of Investor Relations, 602-252-1617, ext. 320, lromero@gum-tech.com. Gum Tech is located at 246 East Watkins Street, Phoenix, Arizona 85004. |
