Dennis
The way I read it the company has already paid to Omega $850,000 cash. The balance owing to complete the purchase is $1,000,000 cash and the official release to Omega of 3,000,000 common shares of IPM that are currently held in escrow from the original purchase agreement. If they can't come up with the cash to complete the purchase by the end of 1998 then the balance owing will be financed by Omega at prime+2%. That $1,000,000 owing represents roughly .05 per outstanding share. As well, this 1M shows as part of the companies accounts payable of $1,921,000 (04/98 10Q)
If shareholders were to look at saving the company it appears that the purchase of the property could be deferred as the financing contract for the property is in place with Omega. The balance of outstanding debt (approx$1,000,000)(0.05 share) would probably have to be covered right away. So, if each shareholder put in 0.05 for each of the shares they hold the company is out of insolvency. For 0.10 a share the company is solvent and and the property is paid for. Sounds simple enough doesn't it!
At this point and in this market I'd be happy with the collective shareholders taking over the company, ceasing all operations, secure all drill hole samples and set a hands off date of a couple years and then review the available options at that time.
Who knows, we could build a golf resort, what with all the water out there. (or does Coggins say theres no golf in Arizona as well : )
Like you say, things can't get worse than the current situation and time and available options are disappearing fast.
Rob |
