Hi Tom,
On Feb 28, 2001 DMX had 41,986,855 shares outstanding.
Since then they've issued some 676,000 shares to Acqua
and no doubt some options etc. I would think 42.7 million
shares is a close number.
Question 2 is loaded. There is almost an endless blend of
ways involving cash, shares, notes, assets, future
considerations, etc, etc.
Assessing our 'best interests' depends on what happens
afterwards of which a strongly rising shareprice is the
best scenario (giggle).
Cash needs to be conserved to the point of funding
operations for all products. It's possible as di7026
speculated that WF10 may be a candidate for third party
manufacturing from which we take a decent cut.
I would prefer all cash not required to be used in the
purchase. This reduces the dilutive effect somewhat and
I want all dilution to occur at as high a sharprice as
possible.
For instance the basis of this transaction should be to
add value to the shareprice. Paying $6 million cash right
now (for ease of calculation) to me is preferable to
issuing 1 million shares right now. If the transaction
does add value as expected - then issuing the 1 million
shares later creates more value in comparison.
I mentioned earlier and believe that the more notes
receivable included the better. There would be some premium
to the current valuation; but, it requires no current cash
layout and (on an opportunity cost basis) pays out when
less shares are needed to raise the cash payable.
A lot revolves around the reason Dr Khuene sold 100% and
what his agenda is for the future.
I don't know the answer to the last question about
shareholder approval required.
Wolf |
