ATTENTION ALL FBNA STOCKHOLDERS
Thursday April 2, 1:06 pm Eastern Time
Company Press Release
SOURCE: FBN Associates Software Corporation
Hostile Talkeover Bid by Consortium
CHARLOTTE, N.C., April 2 /QRNewswire/ -- While shares of FBN Associates tumbled today amid rumors of an SEC Fraud Investigation by the SEC, a consortium of investors led by Andrew Vance, Ron Pearlmun, and Karl Icahn, moved to take over the company in whaty appears to be a hostile bid.
FBN Associates was recently awarded a major YR2000 remediation contract totalling over 100 million lines of code. This announcement was prematurely released just as the stock was about to go public. The premature release of this announcement caused an unprecedented surge in the price of this stock at the open.
Originally thought to open at $16 and then trade to the low $20s, the shares spiked as high at $87 prior to the close of the market when word of this contract leaked out. Being a direct violation of SEC rules govening quiet periods, a investigation was started. To compound this problem, it seems that insiders and certain share holders were able to exercise both warrants and Preferred share conversions creating a situation where millions of extra shares became part of the public float.
As investors rushed to grab up as many shares of the company as they could, investors were unaware of the doubling of shares going into the float. As news of the SEC probe was disseminated and the realization that there was a dramatic increase in the additional shares brought to market, trading on the stock slowed down. Unfortunately this was occurring towards the end of the trading session.
The stock was able to close prior to it being halted. Prior to the close 3 major trades were executed along with a huge shrot position taken by parties as yet unknown. In after hours trading the stock was halted pending further investigation. At 11:50 am this morning it was determined that while FBN Associates was not directly responsible for the news leak, its external IR firm was the source of the leak making them indirectly responsible. Trading was resume at 12:30 pm EST with the Ask price dramatically down from the previous day's close. Shares of the company open at $26, down $59, in what looks to be the most dramatic collapse of an IPO stock since NSCP.
In what appreared to be a reversal of fortune, the selling pressure on FBN Associates has caused the stock to drop further to $20, leaving many investors devastated. At that point in time, the consortium led by Andrew Vance moved in to buoy the stock and to make a $30 per share bid to take over the company and assume the liabilities associated with this poorly executed IPO. The consortium hopes to acquire a controlling interest in FBN Associates by offering a 50% premium over the current price of the stock.
About FBN Associates- news)- FBN a software re-engineering and biotechnology company that specializes in providing services to resolve the Year 2000 problem, as well as computer language translation and systems migration services. Using its core
re-engineering technology, they can automatically remediate most computer languages on most hardware platforms. They have offices throughout North America and Europe.
Recent contract announcement was in regards to mortgage guaranty insurance that protects residential mortgage lenders and investors against losses caused by borrower default on first and second mortgage loans. Successful completion of this contract is a vital stepping stone to successfully becoming the lead remediation service company for this multi-faceted industry.
BTW-As you all know, I was one of the major shorters of this company. I would sincerely hope that all stockholders seriously consider our tender offer. I was approached by the other two individuals this morning. All I can say is that my "partners" have wreaked havoc on other companies when they did not get their way. We beleive we can successfully navigate through these tenuous times and find a cost effective remediation of all issues. |
