Duncan,
In your earlier post, you mentioned:
<... I'm obviously long ECO...but have been playing DBCO on the side>.
Could you tell us if you are short or long ?
As for your question on the new shares. DBCO's third quarter 10Q (6/30) showed 29 mil shares outstanding. Check the first page of 10K, you would see the statement: "The number of shares outstanding of the registrant's sole class of common stock as of January 7, 1998 was 31,447,648 shares." Go to the page 20 of 10K, you would see " On August 20, 1997, the Company issued 2,380,000 shares of Common Stock upon the exercise of certain outstanding options...". The math goes 29 mil + 2.38 mil ~ 31.4 mil, which is the number shown in the 10K. This tells us that 3.3 mil new shares were issued after Jan. 7, 98 to add up to the 34,716,878 shares. Further, the new shares have nothing to do with the Deere Park/DBCO's exercise of options took place in August last year. (Note, go to the bottom of VSE filing page, you would see small fonts like: Last updated: Wed Feb 18 3:01:50 Canada/Pacific 1998 ).
So, I maintain that 3.3 mil new shares were created recently, and I suspect that they were for either half of Sanda's infusion or paying for the golden parachutes.
You suspect that DBCO had a poor 1st quarter 98 and the shareholder equity is significantly lower now. That's speculation and I can't say you are right or wrong. I can speculate, negatively, on ECGOF's earnings or financial situation, but why should I?
Chien Li |
