IGHS Conference Call notes:
The conference call was primarily to explain in detail the merger announcement which was originally released on Friday, May 14:
biz.yahoo.com
Some of the questions:
Why reorganize in Virginia?
Several reasons, primarily because the company is based in Reston, Virginia. That area is also becoming an internet center for several companies (kind of like an internet Silicon Valley). Also, reorganizing in Virginia will save the company around $100,000 in annual fees vs. being organized in another state. Also, the renaming of the company to H-Quotient fits in more with the company's internet business direction.
What is the status of becoming fully reporting?
The company has stated previously that they plan on filing their Form 10 (for fully reporting status) with the SEC in the 2nd qtr. CEO Michael Black went further to say that the audit is going extremely well and that June 15 is the target date for filing the Form 10.
Is the company working on getting additional contracts for their proprietary systems?
Yes. Black obviously could not go into details, but he sounded pretty enthusiastic that we'd be seeing some more contracts soon.
Will the merger and share exchange force naked short positions to cover?
This question was asked about every which way it could be asked, and to Black's credit, he responded each time that it was the company's policy to not comment on trading activity on the stock. Each time there was hesitation like he wanted to give us the answer we wanted to hear, but he stuck to his guns.
What are the company's intentions to increase shareholder value and increase recognition?
The company is currently making applications for the bigger boards. He would not give specifics as to which one('s). Of course, the Form 10 has to be filed first in order to apply for a larger market listing. It is definitely their intention to get off the bulletin board as quickly as possibly.
Regarding the actual merger, this Thursday shareholders (or their brokerages) will receive a letter from the exchange agent giving instructions to exchange IGHS shares for shares in the new company. Deadline for the share exchange is June 14th at 5pm. There is a chance that the stock could stop trading for a few days as they trade old for new shares and get the new symbol prepared for trading.
Also note that the company's web site is now at integratedhealthcare.com (instead of ighs.com).
After the merger, they'll be opening a new site for H-Quotient.
All in all, things look very positive for IGHS. Projected earnings of $0.14 this year, fully reporting status, larger market listing, large short position which should be covered in the next 17 trading days, more contracts on the way. I'd say we're in pretty good shape.
Gator
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