diluted shares are 13.9 M by my count, so the market cap is $260 M.
What a marvel, for a co. that consists of three operations, which were bought recently for a small fraction of that amount.
in the latest 10Q, it shows 10.3 M shares outstanding on May 1. Which might make you think this co. has a market cap of $180 M. However, there are a lot more shares coming. By my reckoning:
10.3 M out as of May 1
1.7 M anticipated debt to equity swap
1.4 M private placement 5/99
__________
12.5 M subtotal
add to that the 1.4 M in-the-money warrants indicated in the 10Q:
13.9 M shares total.
Multiplying by the market price of $18.75 gives the stock a market cap of $260 M.
The Company funded its operations this quarter through a loan
from a third party in the amount of $1,000,000. An additional $162,500 was
received from this third party in April 1999 as a capital contribution. It is
anticipated that this third party will invest an additional $1,000,000 for
equity and will convert the outstanding loan to equity, resulting in the
issuance of an additional 1,700,000 shares of common stock. The Company also
received in May 1999, $750,000 from another third party and anticipates
receiving an additional $2,750,000, also in exchange for equity totalling
1,400,000 shares of common stock and 1,400,000 warrants to purchase common stock
at $3.00 per share exercisable within one year. |
