There seems to be a little irrational exuberance at work with RONE. It may be that there is some confusion as to the number of shares that are outstanding. As of Friday’s close (@$1.80), the market was valuing the RONE shell at close to $40 million. At its peak at $3.00 per share on Thursday, the market cap was in excess of $66 million. This for a shell with no real assets and liabilities in excess of $300,000.
When the company filed its 10-K on March 22, 2002, there were 1,269,217 shares outstanding. On April 9, 2002, they filed a DEFA14C that disclosed two items:
1) The 208,965 shares of convertible preferred stock had been converted into 20,896,500 shares of common stock. The total number of shares outstanding is now 22,093,375.
2) There were outstanding options for 2,418,942 shares at year end with an exercise price of $.8125 per share. The options had an expiration date of March 31, 2001. The company has now extended the expiration date to July 1, 2002.
After the conversion of the preferred shares, Malcolm Currie, the Chairman of the Board of RONE, had 3,000,000 shares. Two of the directors, Richard Babbitt and Michael Platt, owned 3,000,000 and 3,675,000, respectively.
The 10-K and the DEFA14C can be found at:
sec.gov
sec.gov
It will be interesting to see if RONE actually closes on this transaction. Since it shut down its real estate operations in 1992, it has made five previous attempts to complete a reverse merger: Xechem, Inc. in 1993, Carbonex Systems in 1995, Quality Franchise Systems in 1996, Safesight in 1997 and Infectech in 1998. |
