Barry & all:
I just finished the LASX proxy statement. A 1-20 reverse split could be a disaster (giving further distance for the stock price to fall on its way to zero), BUT I DON'T THINK SO HERE. With that, here are some preliminary thoughts:
1) This reverse split is necessary to comply with the new NASDAQ rules for listing. It may also add some credibility, but I think that will take more time, as fundamentals change (which they will).
2) The proposed "rights offering" to current shareholders as a source of financing has been deferred for now, as not being in "the best interests of the shareholders" at this time. If they have the financing to execute their plan, that's fine with me. It will actually be less risk to assume for the current shareholders.
3) The Technology Acquisition proposal looks like a big (potential) winner for LASX, and XL Vision. Sandia Imaging Unit will be split into a Systems Division (Texas) and a Technology Division (Florida, with XL Vision). XL Vision will own just over 20% of LASX, so they, with Safeguard Scientifics' help, will have huge incentive to keep the stock price up and develop all applications of the new readers. XL Vision has a short but sweet track record in the imaging business, and Safeguard has a long, successful track record in the technology company management/funding business.
4) I don't like the new name (Axcess, Inc. - ticker: AXSI). I think Lasertechnics is more distinctive, but I do suppose that "access" implied by the new name is more reflective of the real potential for the company than "laser" or Sandia. The Marking Unit will still use the Lasertechnics name. (And, BTW, "axcess.com" is already taken!, but "axsi.com" is available :-)
Just my thoughts. John Paul?, anyone else?
--John |
