Rande, this is from the KTWO 10K:
In May 1998, the Company decided to discontinue the CLIQNOW! Division.
Accordingly, this business has been reflected as a discontinued operation for
the years ended December 31, 1998 and 1997. On June 1, 1998, the Company sold
its CLIQNOW! Division to 24/7 Media, Inc. ("TFSM") for gross proceeds of $4
million, consisting of $1 million of cash and $3 million of TFSM Convertible
Redeemable Preferred Stock. The sale resulted in a net gain of approximately
$2,994,000. On August 13, 1998, TFSM's registration statement for its initial
public offering was declared effective by the Securities and Exchange
Commission. As a result, the Convertible Redeemable Preferred Stock of TFSM
automatically converted on that date into shares of common stock of TFSM, of
which the Company retained 196,492 shares. These shares are being carried at a
cost of $2,558,300 (approximately $13.02 per share) on the Company's
consolidated balance sheet at December 31, 1998.
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Good call here and a heck of deal for KTWO.
Oh, did anybody notice that KTWO has warrants?
JR |
