SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Avalon Group, Inc.
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Eric Fader who wrote (816)1/14/1999 7:14:00 PM
From: equalizzer  Read Replies (5) of 1530
 
The assumption of debt issue in most cases means that the value assigned to the transaction is as follows.
1. Value of shares outstanding multiplied by .25c.
2. Value of debt divided by number of shares outstanding is then added to the value of shares to give a real price being paid.

In AVAL's case the debt may add several pennies to the value of the deal. When you also factor in the cost of the warrant call you could be adding 5 to 6 cents to the value of the deal. Again the management of both companies must fully describe the benefits, versus the downside, so that correct decisions can be made. If an IPO is in the works then the shareholders of the surviving company may well be looking at a very advantageous development. On the other hand they may not. What is happening is AHS is expending a great deal of money and is clearly committed to the restructure, and subsequent growth, or why spend the money?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News