NEWS OUT 3-23-98 on Yahoo! Here's the link and the text...
biz.yahoo.com
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Monday March 23, 9:28 am Eastern Time
Company Press Release
Firamada, Inc. Issues Calculations For NASDAQ Merger
NEW YORK--(BUSINESS WIRE)--March 23, 1998--Firamada, Inc.
(OTC BB: FAMH - news) today issued approximate calculations
relating to their pending merger with a NASDAQ Listed company.
The following share considerations are used in subsequent
calculations:
--Firamada Shares Outstanding: 40,000,000
--NASDAQ Company Shares Outstanding: 1,413,913
--Brokerage Warrant percentage at time of Merger: 4.9%
The proposed rate of exchange in the pending merger transaction
is 4 to 1 (4 shares of Firamada, Inc. stock for 1 share of the
NASDAQ company's stock). Firamada shareholders could
calculate their post-merger number of shares by dividing their
current number of shares by four (i.e. 100,000 shares before the
merger would equal 25,000 shares after the merger).
Brokerage warrants will be issued based on the total number of
post-merger shares (11,413,913). At 4.9%, the total brokerage
warrants would equal 559,282 shares.
A post-merger EPS calculation can then be made using the
aggregate total number of outstanding shares: 11,973,195
(Firamada post-merger shares of 10,000,000 plus NASDAQ
company shares of 1,413,913 plus brokerage warrants totaling
559,282 shares). Firamada's 1997 revenues will be the sole basis
for calculating the post-merger EPS.
Based of Firamada's pre-merger EPS of $.1085 for 1997, and the
proposed post-merger total number of shares (11,973,195), the
new EPS calculation for a NASDAQ Listed Firamada company
would be approximately $.36.
Industry multiples can then be used to ascertain a relative share
value using this new EPS:
1998 EPS of $.36 multiplied by an industry multiple of 25 would
yield a share value of $9.00.
Firamada President, Ira Monas, addressed the potential effect of
this aggressive strategy: ''We are on top of this opportunity.
Negotiations are moving quickly, and we anticipate completing this
merger soon. A NASDAQ listing will increase our level of
accountability as well as our status.
''The result of this merger would raise Firamada's recognized value
and credibility considerably. Additionally, this would add leverage
to all future negotiations when pursuing new acquisitions.''
Mr. Monas concluded, ''We have some limitations at this time
regarding information that can be released. We have to be
sensitive to issues relating to the NASDAQ company, but we will
continue to put out any information we can.
''We have a great group of shareholders, and appreciate their
continued support. In light of that, we are continuing our buy-back
of Firamada shares. We would suggest that anyone considering
investing in Firamada look at our fundamentals and rapid-growth
business plan.
This plan certainly benefits from being in one of the hottest
business sectors in the country.''
This press release contains forward-looking statements with
respect to the results of operations and business of the Company
that involves risk and uncertainties. Risks and uncertainties of the
Company will be detailed from time to time in the Company's
periodic reports to be filed with the Securities and Exchange
Commission.
Contact:
Firamada, Inc:
Ira Monas, President
Irafm@aol.com
or
Preferred Financial Marketing
Tel: 310 789-1132
Fax: 310 789-1134
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Best wishes,
Brad |
