Anthony, could this be the the stock didn't move as much as it should have?? hmmmm...
In April 1998, the Company received commitments from a group of
accredited investors to purchase for $1,400,000 the shares of common
stock of Skate Corp. that are currently owned by the Company along with
an option to acquire shares of the Company in exchange for the
purchased shares of Skate Corp. The options allowed the investors to
exchange each common share of Skate Corp. for 1.5 shares of the
Company's common stock. In April and May 1998, the Company received
gross proceeds of $255,000 from investors acquiring 335,507 shares of
Skate Corp. Each of the investors exercised their options to exchange
those shares for 167,754 shares of the Company's Series A preferred
stock, which automatically converted to 503,261 shares of the Company's
common stock on July 15, 1998 upon the shareholders approving an
increase in the authorized common shares of the Company from 10,000,000
to 20,000,000. Subsequent to the receipt of the $255,000, this offering
was closed to further investors, and two officers/shareholders of the
Company have agreed to purchase the shares of Skate Corp. from the
Company for $90,000 with no conversion rights. This purchase price is
based on the net book value of the Company's investment in Skate Corp.
edgar-online.com
Also says " The offering was closed to further investors as the Company was able to
obtain similar financing on terms more beneficial to the Company as
discussed in Note 4."
Funny, since that is the preferred convertible holder's financing.
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