MK, Longs, Shorts, Lurkers and all, (Thoughts on Riley's share count)
A while back, a few people posted lists of what they thought it would take for RMIL to survive. I agreed with those lists. 2 items in particular were the $5mm cash infusion for at least short term interest in RMIL and also accurate company share count information for the squeeze. I can't do jack about the $5mm but I thought I'd find out for myself if Riley's numbers jived.
I agree with Riley's numbers. I'll try to explain why and at the end will list possible flaws in my conclusion so you all can decide for yourselves.
1) Per Riley's post 33379, there are 11,484,750 Rule 144 Legend shares for the merger. I agree with this (the info is in the 9 Oct 97 8K). These shares don't matter for the squeeze because they are restricted and can't be sold on the market right away. I don't know how long they are restricted.
2) Next line on Riley's list (post 33379) are 1.2mm (approx)insider 144 shares. These are restricted. Again, don't know how long. More on these shares later.
3) Next are the 2,171,081 shares which make up the public float.
4) So, excluding the merger restricted shares, there are 3,371,081 shares of which ~1.2mm are restricted.
5) Per the 4 Apr 97 10QSB, there were 914,401 shares as of March 31, 1996.
6) Per the 4 Apr 97 8K, there were 2,000,000 new shares issuable as part of the Stock Option Plan.
7) Per the 16 May 97 10 QSB, there were 2,571,081 shares as of May 15, 1997.
8) Seems to me they issued some of the 2mm shares listed in 6) above sometime between 4 Apr and 16 May 97.
9) Per the letter SMartin posted (33092) from a Magellan lawyer to an OVIS lawyer (complaining about the issuing of 1.7mm shares under the Stock Option Plan), it states, "...I believe they would view the issuance of almost 1.7mm shares under Form S-8 to outside consultants by a company with 1.4 million shares outstanding as an abuse". The 1.7mm is out of the 2mm in the Stock Option Plan mentioned in 6) above. I will assume the remaining 300,000 were issued. Add the 2mm with the 1.4mm mentioned in the letter and you get 3.4mm shares. The same number (approx) as Riley as mentioned in 4) above.
10) Since Riley's numbers seemed to be confirmed per a Magellan lawyer, it seems safe (IMO) to assume Riley has accurate info on 1.2mm of the shares being restricted insider shares. I'm willing to believe him.
Possible flaws in my reasoning:
a. I'm not an expert at this stuff.
b. I relied on a letter that no one has confirmed actually came from a Magellan lawyer or is even accurate.
c. I want this squeeze to work.
d. Probably many more possible flaws that I'm sure I'll read about-I am willing to listen.
Cheese
Still Holding :-) |
