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Microcap & Penny Stocks : Dominion Bridge Corp. (DBCO)
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To: Chien Li who wrote (441)2/17/1998 9:08:00 PM
From: david james  Read Replies (3) of 535
 
So far, I can't see why any company would have an interest in buying DBCO shares above $2. The Sanda deal just doesn't make any sense to me because it would likely keep Curly and Moe in power, and the investment - especially one at $2.63 - would be at serious risk.

Lets consider another possibility to account for the 3.3 mill shares - although this is just speculation. In the Feb 9th press release it states:

"American Eco Corporation and Dominion Bridge Corporation, jointly announced that they have entered into exclusive negotiations for, among other things, (i) the private placement of USD$5.0 million of Dominion Bridge securities to American Eco"

So let us assume for the sake of argument that Eco was given $5 mill worth of DBCO shares for their cash at a price of $1.5/share. That would produce 3.3 mill shares. Now take a look at the current price. It could be that DBCO is $5 mill richer and Eco is dumping their shares.

With Davie needing $1 mill a week to run, this could let them survive a bit longer - as long as its not spent on keeping Curly and Moe in the lifestyle they desire. But it is certainly not enough.

Its probably more likely that the $5 mill cash was put in escrow awaiting completion of the deal.

But who knows?

David
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