Who can help with the new financing? I'm a little confused now.
Capco announced on ß5/18/99:
"Upon completion of due diligence, the initial investment is expected to be funded through preferred convertible stock
offering."
My interpretation is, LAZT will print additional shares for Capco. Assuming, the number of total outstanding shares is 18
million, this would result to:
1) 17% for 7 mill. USD, increasing the number of outstanding shares to 21,686,747, providing 3,686,747 shares to Capco at
a rate of approx. 1.9 USD/share
2) 35% for 17 mill. USD (the original 7 plus the additional 10 million USD), increasing the number of outstanding shares to
27.692.307, providing 9,692,307 shares to Capco at an average rate of approx. 1.75 USD/share, whereby the additional
6,005,560 shares (=9,692,307-3,686,747) would be a sold at the rate of just 1,665 USD/share.
Please, anybody correct me, if I'm wrong.
Question: Is this LAZT management crazy? They are talking about big news and NASDAQ listing and then they just dillute
the by printing new shares and give them away at such discount prices? You saw market's reaction. We are trading now at
these discount prices, about 35% off.
What is their return from Capco, just the money? Was LAZT already that dead to accept such bad conditions? If yes, why
didn't they just accept the offer from the asian group, to take over 51% at 4$/share?
Can anybody help?
Gogo |
