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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services
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To: lmw who wrote (845)1/7/1998 5:16:00 PM
From: Dave Shares  Read Replies (2) of 27968
 
Your questions point to the great mystery of the OTC-BB arena, LMW.

There are many ways to finance acquisitions when the word "stock" is mentioned.

It may be restricted (good) or not restricted (not good)
It may be restricted for up to a year (good) or restricted for only 45 days (not good)
It may be preferred stock that may be convertible into common stock at a price which is higher than the current market (this would be OK to me)

Now, what is FAMH doing in precise terms to finance this acquisition ? I don't know, but hopefully someone will soon learn. If FAMH were filing SEC reports, we'd know, but they are not yet doing so, so we don't.

I'll offer this hopeful observation. If they are acquiring companies with proven revenues, chances are that FAMH can obtain better financing terms than if they were trying to finance the possibility of future revenues. I'm hopeful that FAMH will get a good deal for what it is they have to finance, and it is as yet unclear as to how much of the previous 504D financing is still in cash to facilitate this acquisition.

Having said all this, maybe we can all agree that maybe these are some of the reasons that a company with promise on the OTC BB trades for .40 per share, when other temporary staffing companies trading on the national exchanges sell for considerably more.

Looking forward to future gains, and patiently waiting.

David
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