ALU - Allou Health & Beauty: Another Web Play Message Board

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Technology Stocks : ALU - Allou Health & Beauty: Another Web Play

ALU 3.460

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Mar 3 4:00 PM EST

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To: Bo Le who wrote (362)	4/30/1999 12:13:00 AM
From: Questerr	Read Replies (2) of 418

Bo, I will call David Shamilzadeh again tomorrow to try and get exact details of the deal. I think your numbers might be a bit off. Jacobs had 13% of FC and options to buy another 13% at a certain strike price - therefore on a fully diluted basis they owned 26%. In this deal, they had to sell their options for the extra 13% per the new investment group, but could keep their 13% equity stake. David S. told me the Jacob's original $3 million loan which has been since converted to equity was worth today about $6 million (13% of FC). If we assume our 74% stake on a fully diluted basis was worth $37.5 million, then FC's total market cap is $50.6 million ($37.5/.74) Our remaining 13% stake in FC is now worth $6.5 million and Jacob's 13%stake is also worth $6.5 million. In essence we walked away with $20 million for selling a 40% stake ($20M/$50.6M) in FC, then we sold our remaining 34% stake for $17.2 million, of which about $11.7 million was earmarked for carry-forward losses on FC's books, and our remaining $6.5 million in cash was reinvested back into FC to buy back our current 13% stake, which adds desperately need $$ to FC's coffers. Just my guesses figured out from the back of a napkin. Thoughts as to whether my calculations are on target? Regards. I don't think mgt. or Jacobs shafted us here Bo....no conspiracy.

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