Intek (IDCC)` Message Board

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Technology Stocks : Intek (IDCC)`

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To: Mark Mattson who wrote (33)	2/2/1997 10:42:00 PM
From: WMG	of 120

Though I don't have the proxy statement in front of me, I believe there were about 11 million shares pre-merger and about 42 million shares post-merger. However, the number of shares in the float (non-insider) is still quite small, hence, poor liquidity and little fund manager interest until a secondary offering can be completed. I have heard that the company would like to raise about $50 million at a price of about $12 per share. These funds would pesumedly be used for additional working capital for the nationwide rollout of the service and development of additional services to enhance the product line. $300 million acquisition? I have a difficult time understanding how INTEK could contemplate such a large transaction when their current market capitalization is only $160 million. It would be extremely dilutive at the current stock price and if Securicor were to loan INTEK the proceeds for a cash transaction, it would damaging to their debt/equity ratio to the point of making the anticipated follow on offering for $50 million in the $12 range almost impossible. WMG

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