Structure of FAMH Financing
Mr. Ira Monas, President, Firamada, Inc., would like you to know
that FAMH has a POTENTIAL $20 million line of credit. In a phone
conversation, early this afternoon, Mr. Monas stated that he might
draw down this line of credit, using the following formula:
Monthly Share Volume x Share Price x 11% = Available Drawdown.
If the current share price is $0.35, and last months share
volume is 10,000,000, then the available drawdown would be 10,000,000
x.35 x 11% = $385,000 max available drawdown. Should the share price
be $0.70, and the previous months volume be 10,000,000 shares, then
the drawdown would be 10mm x .70 x 11% = $770,000 available drawdown.
No shares have been issued for this financing arrangement.
Shares will be issued at the time of drawdown. The shares issued
will be at the then current market value, issued at the time of the
drawdown, and the number of shares issued will be only enough to
equal the value of the drawdown.
The shares issued are new, they are restricted, and they are
common shares, with a non-voting clause, which may be repurchased at
any time.
The funds from the drawdown may be used for any business
purpose, including the repurchase of the restricted shares.
Considering that they will mostly be used to improve the bottom line,
this sounds like a very good arrangement to me.
Lowell, there is one other issue that we should discuss. I own
a small company, it is not public, but if it were, I would greatly
resent the comment about being put in jail, if the shareholders did
not receive their perceived value for their investment. This type of
statement implies that the President is untruthful in his statements
to the shareholders, and it may be perceived as liable, could it be
proven that such a statement undermined the share value, and caused
other shareholders to lose their value. I'm certain that you
understand this, but I just wanted to remind you how truly costly it
can be, just to have to show up for a deposition. You really
wouldn't want this.
Good investing to all! I'm long on FAMH!
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