Hi Elroy, sorry to take so long in responding, but I had some personal issues to take care of since my last post. Be prepared, if I finish this post the way I plan on laying it out, it could be pretty long. It's going to be tough for me to lay this out in an organized logical way, but I'll give it a try.
Your comments on some of the companies in the Middle East involved with LFWK would be much appreciated; as I've had some difficulty sorting through the most recently mentioned companies in their pr's.
But here is the DD I have thus far.
First of all, keep in mind this is a pink-sheet company, so SEC documents and other Edgar filings have not been completed. I think it's the key reason why the value has remained as low as it has. I also believe it's about to change and in a dramatic way very soon.
First the share structure....
Authorized: 500,000,000
Outstanding: 200,000,000
Float: 114,000,000
Restricted: 86,000,000
Recently (past two weeks), the company authorized an additional 300,000.000 shares. However, CEO Steve Sulja stated in a press release dated July 12, 2006: "The share increase is for reverse mergers only and will be restricted when issued. The company management is very excited about the upcoming public releases. Our shareholders will be very happy."
Now, the websites involved. I'll explain why there are so many as this post unfolds.
suljabros.com
loftwerks.com
loftwise.com
consultechconstruction.com
ibp-usa.com
koreintl.com
vgic.biz
Here are a few projects Loftwerks has either under construction or completed.
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-Carlton hotel
$170 - $220 sq ft. / 48 units / 50% reserved
detroiturbanliving.com
detroitmidtown.com
-The Carola
detroitmidtown.com
-The Stuberstone lofts
13 units / 150k - 250k per loft
detroitmidtown.com
-Jamison lofts
221k - 345k summer 2006
citylivingdetroit.com
-New Center lofts
150k and up / sold out
citylivingdetroit.com
-St. Charles lofts
12 units / 160k - 200k / fall 2006
citylivingdetroit.com
-Lofts at Rivertown
172 lofts / 100k - 500k
citylivingdetroit.com
-Roosevelt hotel
Construction in Spring 2006
32 units 124k - 195k
detroitrising.com
-Bonnie bridge townhouses - new
allamericanbuildings.com.
-Lamar lofts
10 units / 130k each
detroiturbanliving.com
-Van Vliet condos
1 unit left of 14 / 179k
detroiturbanliving.com
-Landsburg lofts
8 units / 172k - 370k
detroiturbanliving.com
-Landsberg Lofts North. Detroit, Michigan. 8 units. Purchased for 460K. Appraised value prior to construction 750K. Construction costs 650K. Estimated value after construction 2.1M.
-Milwaukee Junction. Detroit, Michigan. New construction. 52 Brownstone units. 14,000 sq retail space.
-Ambrose Lofts. Nashville, Tennessee. Joint Venture. 20 unit loft conversion. Total sale price $4.7M. Ground floor retail (occupied). 40% of project to LoftWerks.
-Doctor’s Building. Nashville, Tennessee. Approx. 50 units. Total sale price $15M. Ground floor office/retail (occupied).
-Mid-rise condominium project. Detroit, Michigan. New construction. Approx. 50 units. Total sale price $40M.
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That about it in regard to the Loft building side of the house (for now). And it's the smallest piece of the pie I believe.
Loftwerks as it existed building lofts such as the ones highlighted above still exists, but represents only a fraction of the income stream coming online for this corporate entity.
Now, you've got to understand how the reverse merger fits into the LFWK puzzle. But in order to do that effectively, I will need to start at the top of the corporate pyramid structure. There is a private consortium company called Vista International. vgic.biz
They operate worldwide and have many different companies under their umbrella. The main function seems to be building, selling and renting real estate.
The building portion of the parent company is called Consultech. It's divided into different company names that begin with Consultech and operate semi-independent of one another around the world. One is called Consultech Construction Management Midwest Office. They build semi large scale projects in America, and have operated out of the Midwest for a number of years. Since they are a private company, figuring out how much revenue and profits they have has been impossible. Estimates run from 50-150 million a year in revenue. Profits are something that has eluded even the most motivated stock holders.
They receive their building materials from a wholly owned subsidiary named Sulja Brothers based out of Ontario Canada, with a satellite yard in Detroit Michigan.
From the Sulja website, their financials are published.
suljabros.com
Consultech's Midwest Office and Sulja are reverse merging into the Lofwerks vehicle. Putting Consultech's Midwest office aside for a moment, estimates on combined revenue (Sulja/Lofwerks) range from 50-125 million and profits from 3-15 million.
Cottbettercaptial is handling the paperwork for the merger and SEC financial documents.
gottbettercapital.com
Adam S. Gottbetter is the Managing Partner of Gottbetter & Partners, LLP, a law firm which offers corporate, securities and M&A legal services to support the corporate finance services of public companies seeking access to the capital markets as well as private companies as part of a committed going public transaction. Mr. Gottbetter specializes in reverse merger transactions and an alternative structure for taking companies public called a "GPO", or Gottbetter public offering, in which a company takes itself public without an underwriter. Since 1993 Mr. Gottbetter has created a one-stop shop approach to legal and finance services for micro cap public companies.
Based on the above share structure, you can do the math and clearly see how undervalued the company is.
The future; with some speculation;
Sulja brothers have building materials. Consultech and its parent company Vista needs those materials to build projects around the world. One of the areas of focus for them is the UAE.
Friday April 21, 12:36 pm ET
WINDSOR, ON--(MARKET WIRE)--Apr 21, 2006 -- New LoftWerks (Other OTC:LFWK.PK - News) CEO Steve Sulja in Windsor, Ontario announces today that Consultech Construction Management Inc.'s Director General Petar Vucicevich has been in the Middle East for the past 4 days completing negotiations for the land and construction of a 280 room exclusive luxury hotel on the Al Reem Island, in Abu Dhabi, UAE. tracey Banumas, Director of Operations for CCMI stated that the cost of acquiring the land on Al Reem Island is $29M, cost of construction of the luxury hotel is estimated at $645M, both the land and financing for this project have been secured as of yesterday. The anticipated start date on the hotel construction will be mid 2007, and to be completed by mid 2009. Abu Dhabi, United Arab Emirates is one of the busiest and fastest growing areas in the world. Average hotel occupancy rates in Abu Dhabi are over 92%, and increasing steadily with the onset of businesses moving into the new hub of the Eurasian market.
In a recent press release, Sulja is opening three new offices in the Middle East to meet this demand. They have also formed an alliance with Wessal International to promote the company in the Middle East. biz.yahoo.com
They also have demand for those products in the storm damaged area of America, and are building two facilities to meet that need.
Thursday April 13, 1:03 pm ET
Truss and Wall-Panel Robotics Facilities Will Increase Niche Production 300% Over Current Segment in Canada
NASHVILLE, TN--(MARKET WIRE)--Apr 13, 2006 -- LoftWerks, Inc. (Other OTC:LFWK.PK - News) today announced that its new post-merger owner, Sulja Bros. Specialty Building Materials, Ltd., plans to construct and operate two automated, robotic-enhanced truss manufacturing facilities in the markets of Kitchner, Toronto, Ontario in Canada and in the Gulf Dale/Biloxi Mississippi area (both announced previously as target niche markets by a company spokesman).
There is a whole lot more, but my brain is a bit tired of thinking about it tonight.
I hope some of this makes sense to you Elroy.
Have you ever heard of Wessal International or the Red Sea Group? |
