Ouch! David, my take is that the marketplace has placed a high future value on many internet companies,,,,,and DoubleClick is one example, at ~$31 per share that matches closely to the business that Zulu-tek is in. Audited financials will give the investment community what is needed to finish the comparison correctly value the share price.
As for Convertible Preferreds, I've owned them in other companies, and have stated correctly that:
1. The Convertible Preferreds will be sold mid-March.
2. They will be available for conversion after 2 years,
if the holder wants to convert them at that time.
3. They will be issued out of already available stock.
4. We do not know how much of the $50 Million will be
provided to ZULU-tek.
I'm not sure I understand what your point is that you are trying to make about dilution. I understand that the debt instrument needs to have appropriate debt value on the books, but if someone gives you $50 Million and you owe $50 Million, doesn't that net?....it's much different than giving Preferred Shares for no tangible assets -- let's say services rendered that do not add to the value of the company.
Here Zulu get's additional working Capital to build their business, access to additional technology and clientel, and additional depth in executive technical leadership known throughout the industry.
Please, without the accounting 101 insults, explain the pending train wreck your trying to stipulate.... |
