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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services
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To: Freddie Forte who wrote (24335)9/28/1998 10:50:00 AM
From: R. Murphey  Read Replies (3) of 27968
 
FF: They could easily have met their obligations.

Based on the numbers presented by PR and on this thread, FAMH issued approximately 54 million shares during 1997 and 1998. At a meager average of $0.25 per share, this raises $13 million. (Based on the average share price during the periods, the total amount may have been significantly higher.)

I believe they "bartered" a portion of the shares for services, so may have actually raised less cash. Nevertheless, it would have given them enough cash to resolve the old obligations and bring them current to do the Myriad deal. As you recall, the acquisition payments were to occur over several years. This conserved capital.

The real key will be the operating income statements and whether outflow still exceeds inflow. They could have been current at the time of acquisition, then reverted back to the old ways of withholding tax and w/c payments, demonstrated by pre-1997 FAMH, and the activity that got Myriad in trouble with the IRS creating the "fire sale". It might take a couple years for the Tax Man to catch up.

So, were/are they floating operations by issuing shares? There appears to only be a potential of $1.6 million left to raise by this route, at today's prices. Got to have operating margins!
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