Ouch, this company has 20 M shares outstanding and they
issue another 50 M shares !!!
What a way to dilute the existing shares, while allowing
the Jalbout brothers to get a bigger share of the company.
At least you might have a better chance to get your money back, because they massively invested this time.
Seeing McMaster involved is somewhat funny.
He's the one who bought back Teknor when it was
a division of Teknor/Saco.-> he got a good deal.
It's a good thing he's involved IMO.
Oh, I see now why they needed a private placement:
they're losing money each quarter and they had cash of
6000$ (good joke!) at the end of Q3 2000 (see report)
Keep me updated on what you decide with your Saco holdings.
Francois
Monday April 9, 8:42 am Eastern Time
Press Release
Saco Accepts Offers for Private Placements
MONTREAL, QUEBEC--Saco SmartVision Inc. announces that it has accepted offers for the private placement of an aggregate of 50,000,000 common shares at a price of $0.10 per share, for total proceeds to Saco of $5 million. Of this amount, $3 million will be subscribed for by Messrs. Michel Baril, Pierre McMaster and Roger Casgrain while $2 million will be subscribed for by Messrs. Fred Jalbout, Bassam Jalbout and Pat Argento. Fred Jalbout is the Chief Executive Officer of Saco SmartVision Inc. while Bassam Jalbout is the Vice-President, Director of Technology.
The private placements are subject to a number of conditions, including: the filing by Saco of a plan of compromise and arrangement which provides for the consolidation of Saco's currently issued and outstanding shares, the conversion of substantially all of Saco's unsecured debt into equity, and satisfactory banking arrangements with Saco's primary lender; the approval by Saco's creditors and shareholders of the plan of compromise and arrangement; court ratification thereof; and, as regards the private placement by Messrs. Baril, McMaster and Casgrain, due diligence with respect to Saco.
The private placements are also subject to regulatory approval.
On March 15, 2001, Saco announced that it had been granted an order under the Companies' Creditors Arrangement Act, providing for a stay of all proceedings against Saco for an initial period of 30 days. Saco is in the process of preparing a plan of compromise and arrangement to be presented to its creditors and shareholders, which will contain the details of the consolidation of its outstanding shares and the conversion of unsecured debt into equity. Saco expects to file its plan of compromise and arrangement on or before April 30, 2001.
Saco's shares are listed on the Toronto Stock Exchange.
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Contact:
Saco SmartVision Inc.
Mr. Fred Jalbout
Chief Executive Officer
(514) 745-0310
Web site: www.smartvision.com |
