Concerning a 2:1 dividend on ESVS shares.............
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LOS ANGELES--(BUSINESS WIRE)--Sept. 11, 1998-- Enhanced Services Company, Inc. (Nasdaq Small Cap: ESVS - news)
today announced that it has completed the acquisition of the assets of Zulu-tek, Inc., in a transaction valued at approximately $30
million in convertible and redeemable preferred shares of ESVS. The convertible preferred shares of Enhanced Services issued to
Zulu-tek will be converted to common shares and distributed to Zulu's shareholders promptly after ESVS stockholders' meeting
and regulatory approval and registration. After the conversion of the preferred shares, ESVS will have approximately 15,500,000
common shares outstanding.
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A dividend could also benefit ZULU if, and this is a big IF, the preferred shares issuED (notice the past tense) to ZULU by ESVS also enjoy any type of dividend.
Or could this be why they issued preferred shares to begin with. So that they can give a pre-deal dividend to common shares only, thereby, excluding zulu from any portion of the dividend.
It would be nice at this point to know exactly who holds/owns preferred shares in ESVS.
It would seem to me, if they wanted to place more shares on the market, they would wait until the preferreds are converted and then give a dividend. But again, what is 5 million shares?
It would be pretty dirty to give a dividend prior to the conversion if you ask me.
But then they also say "After the conversion of the preferred shares, ESVS will have approximately 15,500,000 common shares outstanding." Which would lead one to believe that there will be no dividend at all and we are just getting itchy as the time draws nigh.
Whatever happens I am not going to sell this time. I have lost too much to allow the small (in overall comparison) pittance I have invested now to matter anyway.
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