Well, here we go with the FULL and BRIGHT story of Bomax Resources.
Let's start with the deal: the 'acquisition' of Tucan Investments by Bomax Resources. I asked Jim Bond (Bomax) today if there was any possibility that David Krenbrink (Tucan) could break it up again. Jim was very straight and resolute. He said: 'No, the deal is signed by two Bomax directors and two Tucan directors. This is the deal we've all been waiting for.'
Furtheron to the valuation in Bomax stock. We all did read the newsrelease wrong. It's stated, that 'the company proposes to issue to the SSI shareholders a total of UP TO 25,500,000 ...shares'. Jim Bond told me, that they had to give this number to the VSE. This is based on the already existing valuation of Tucan Investments. However, the VSE eventually decides what the real value will be of the acquisition in Bomax shares, this in close negotiations with the Tucan lawyers. Jim thinks, that the valuation will end up at a considerably lower level (approximately 16 miljon shares). These shares will be restricted in the following sense: 4 miljon shares will be restricted trading for 1 year; the other shares (ñ12 miljon shares) will be so-called 'earn out-shares', which actually means, that the granite business first has to make a certain amount of profit before Tucan will get these extra shares.
Next, the earnings-question: Jim gave me the EPS number of C$0.78 last week and I asked him today if this calculation was based on only the current shares of Bomax (6,500,000 shares) or on the full amount of shares after the acquisition of approximately 22,500,000 shares. Well, I didn't expect it anymore, but I was wrong: the EPS 0.78 figure IS BASED on the FULL AMOUNT of shares of 22,500,000. So, the picture is much better, than we all thought!
I asked Jim about what to expect from the company for the next 6 months. First, he said, we will see some news, in which things will be better explained. Then Bomax will go for the next acquisition: Surcan, the second company of David Krenbrink. This company holds the Surinam gold claims. In this case we won't see much more dilution, because the VSE uses a fixed number of shares per goldclaim for this sort of acquisitions (200,000 shares). Surcan has 7 goldclaims at the moment, but at the time of the acquisition this can be anything between 5 and 10 based on current exploration. So we will see 1 to 2 miljon extra shares coming from this acquisition.
The last thing I asked was, if the company intended to hire a promoter. Jim said, that he was faxing material about the company to certain newsletterwriters, but that they wouldn't hire a promotor. Surprised? Well, I was, but it worked out, that Jim had a very good reason for this. Till now, he had to put all his time into managing the company. However, with the acquisition of Tucan, Tucan will bring in some managing experience and Jim Bond will become chairman of the board to overlook things going AND TO DO THE PROMOTION HIMSELF. This is weird, isn't it? Well, it isn't, because Jim has a 20 year-experience in stock promoting and he has a pretty good trackrecord. What to think of Veronics at $17, American Fibre at $9 and Richport at $14, just to name a few? This is what I call promoting and this is what Jim is going to do in January '97. Can you all guess what this will mean for Bomax Resources? I have to admit, I had some doubts this weekend, but not anymore: we're sitting on a tenbagger AT LEAST is my opinion and I almost can't wait for 1997. I see a very bright future for Bomax Resources and cuurent stockholders of which I intend to stay one.
Johan van Slooten
The Dutchman
The Sharp Razor of Ockham |
