Stewart, do you know what this transaction means? I'm not sure exactly.
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During May 1997, 279,207 warrants exercisable at $5.638 held by R II Partners, Inc. and 279,207 warrants exercisable at $5.638 held by Brite Lite Industries, Inc. were exercised in cashless transactions. Of the $1,877,000 liability representing the difference between the closing price of the Company's common shares at exercise and the exercise price $1,567,000 was paid in cash with the remaining $310,000 balance applied to amounts due the Company under indemnification agreements.
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Looks like FIBR needed some cash so Mr. Chadha just took some money from one of his other companies and made a loan to Osicom. I'm just a simpleton who can't understand accounting but it looks like the repayment terms were quite generous. But what's a little interest among companies that everybody owns? Keep it in the family.
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During the year ended January 31, 1997, the Company received non-interest bearing advances from Rand Research Corporation and R-T Investments, Inc. totaling $1,316,000 which were fully repaid through payments and the offset for an 8% demand loan from the Company to R-T Investments, Inc. in the amount of $100,000 (including accrued interest of $5,000). Par Chadha, director and Chief Executive Officer, and Sharon Chadha, Chair and director, own directly and indirectly 100% of the outstanding capital stock of R-T Investments, Inc. and Rand Research Corporation.
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Looks like the money flows the other way as well. Looks like FIBR did the honorable thing and took shareholders money (remember folks you own the company too) and gave an interest free loan to Mr. Witz's entity Brite Lite Industries. Gives whole new meaning to the term "cash flow" doesn't it? <g> Is that how you shareholders want your cash to be used? Giving out interest free loans?
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During September through November 1996, the Company made non-interest bearing advances totaling $502,000 to Brite Lite Industries, Inc. which were fully repaid in December 1996. Barry Witz, a former director of the Company, owns directly and indirectly 100% of the outstanding capital stock of Brite Lite Industries, Inc.
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