If you guys are serious about resurrecting your investment there is something you should realize.
Your current investment is essentially worthless.
By raising money to buy out IPM, it means you have to 1) pay off IPM's debts, 2) negotiate some kind of deal with Phoenix/Omega to keep the property, and 3) spend some money to see if the property has any value.
If you let IPM go bankrupt and acquire the property directly from Phoenix/Omega, you eliminate the expense of Step 1. The only benefit I could see to buying out IPM would be to gain the benefit of whatever research has been done and whatever equipment they may have. If that research and equipment is worth more to you than IPM's debts, then maybe it is worth it. If not, it would seem you would create more shareholder value for less money by letting IPM die.
It would also seem that in order to buyout IPM, you would have to do some sort of reverse split to ensure that existing shareholders who are not willing to fork over new money don't end up with equal shares as those who are willing to fork over new money. Otherwise, why would anybody fork over new money? But if you do a reverse split, then your old shares become essentially worthless.
If you didn't do a reverse split, say IPM issued 12.5 million new shares at 12.5 cents to raise $1 million from this group. The group would then own 12.5 million shares out of approximately 37 million shares, or about 1/3rd of the company. Would new investors be willing to put $1 million into a bankrupt company but only come away with 1/3rd ownership? I doubt it.
So, IMO, if you guys really want to do something here, the first thing you need to realize is your current investment has no value. If you start from that realization, it may help you to figure out the cheapest way to gain control of the property. |
