Michael: I appreciate your effort in summarizing the information about Kaire Holdings.
My understanding, as of several weeks ago, is that the Potomac deal had not been consumated. It was reportedly going forward, however.
Kaire International was a subsidiary of Kaire Holdings, formerly I.M.T., for a brief period. I.M.T. acquired 81% of the stock of Kaire International in exchange for 45% of the stock of I.M.T. I.M.T. was to provide $2 million in cash for Kaire International. When this was not completed, I.M.T. exchanged 51% of Kaire International for $1 million from an entity called Global Marketing, L.L.C.. This reduced its held shares.
Kaire International has been experiencing serious losses in sales and revenues over the past several years. In the first 3 months of 1998, the company experienced a net loss of approximately $326,000 on net sales of $7,717,000. The company reports that these figures reveal a slowing of net losses, but a continuing decline in sales when compared to the first 3 months of 1997 (Net loss approximately $1,419,000; Net sales $9,604,000.)
Before the I.P.O. of Kaire International, they report a net negative tangible book value of ($1.31). The offering is expected to increase the value per share by $1.12. That leaves a net negative tangible book value after the offering of (.19).
This information is in the offering prospectus. Available at the SEC website.
Steve |
