Jeff, I am avid follower of your posts with respect to ALYD, of which
I am an investor. IVXR has a colorful history, much of which William
detailed in his previous post. I have a few more things to add which
may fill in some gaps. First, let me say that I narrowed down a list
of Y2K stocks to purchase and eventually got in ALYD at $19.5 about a
month ago. However, I came very close to buying IVXR when it was at
$2 at an alternative. I am still keen on ALYD, but I definately
missed an opportunity for a short-term killing. Hey that's life.
A lot of the info I will convey relates to my own research and
hear-say from a friend of mine who bought this stock many years ago
and has held on to his shares.
Yes, IVXR was an oil company. And, yes they got screwed by their own
lawyers, Triton Oil company and the World Court. Many years ago
corporate leaders of IVXR saw an interesting opportunity in Indoesian.
But, first some additional background. During World War II, the
Japanese in their infinate wisdom blew up/sabotaged a number of oil
fields in Indonesia toward the end of the war. For years, these
well field were left alone, but an interesting phenomenon was
observed. Oil was weaking out of the destroyed oil fields and
pooling on the surface.
IVXR found out about these oil fields and they secured the
rights to rehab and develop the well fields [a/k/a the Enim Oil
Project] from the Indosian gov't. However, a problem quickly
developed. They lacked capital. Triton Oil company stepped in to
solve this problem and in the process the two companies formed a joint
venture. But, Triton got an important concession, they were to
oversee the day-to-day operations. Ok, I'll make it short. Basically,
Triton ran the project into the ground (so IVXR and others claim),
Triton had a falling out with IVXR and a long drawn out legal
dispute btw the two companies ensued. Bottom line..... IVXR lost. And,
IVXR used almost all its available resources in the legal fight.
A few years later, in steps Mr. Hite as the new CEO. He successfully
pursued the company's attorneys for allegations of malpractice of
some sort. Either via a court settlement or out of court settlement
(I am not sure of which) they received $5 million dollars earlier this
year from their former attorneys. This was seed money to begin a new
company, a Y2K company.
What is interesting is the developer of the AIM software and his ties
to the company. Quoting from IVXR's annual report:
"On January 14, 1997, the company entered into a Property Purchase
Agreement (the Agreement) with Thomas J. Price, a software developer
to acquire certain software technology including, but not limited to,
an automated information manager and information management
application system including a source program analyzer (collectively
referred to as the AIM system).
The term of the Agreement provide for the company to issue up to
12,000,000 shares of common stock to acquire the AIM system. The
company has paid $20,000 on signing the agreement and subsequent to
year end has issued 100,000 of its common stock. ........... The
company has also agreed to employ the vendor for a period of five
years at a salary of $120,000 per year."
Why is this important to point out?. This is important because
if AIM is successful, Mr, Price who is now President of IVXR
can potentially own up to 2/3 of the company. Wow! I have seen on
other threads where people joke about IVXR paying only $20,000 for
for its Y2K conversion tool. Apparently, Mr. Price believed enough in
his product that he decide to go for owning most of the company
rather than making a quick buck. This deal was also good for the
company as it conserved capital. Capital it would need to successfully
market and launch this conversion tool.
I can be long winded at times so I'll leave it at that for now.
A final thought. I decided to buy ALYD because they were at the
second key stage for Y2K companies - "show me the contracts".
I viewed IVXR as showing up to the party too late. Time will tell if
I made the right move.
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