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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: SIW who wrote (42720)	8/19/1999 12:56:00 AM
From: peter michaelson	Read Replies (1) \| Respond to of 122087

Anthony, what do we know of the Wand Group, which holds 30% of IMAA stock? Located at 630 Fifth AVe in New York - Rockefeller Center. Bruce Schnitzer is the head guy. Total shares = 10.1 million. Receivables Receivables are climbing again and stand at about 165 days. Revenues up about 10% while receivables are up about 25%. Last year they wrote off about $7 million of bad receivables. Apparently they have enjoyed profitability in but one year of the last five - the year they went public. The next year came the receivables write-down. Bleeding Cash IMAA used up about $9.6 million cash in the first 6 months of 1999. "Expenses as a percentage of revenues were affected by lower than expected revenue recognition in the first six months of 1999. The Company is reviewing all aspects of its business to find additional revenue growth opportunities and operating expense reductions." latest 10Q Dilution and Options "In connection with the issuance of the Series A, IMA issued to the holders of the Series A a warrant to purchase 621,056 shares of IMA common stock at $4.00 per share through August 12, 2002. In addition, IMA issued to the holders of the Series A an option to purchase 1,612,903 shares of IMA common stock at a per share purchase price of $6.20 through August 12, 2002, provided that the holders of the Series A simultaneously redeem the Series A to buyingedge.com." From 10Q 8/12/99 That Series A preferred yields 9%. Value of Equity = $25 million Apparently $5 million is the value of 20% of the company. "On August 12, 1999, IMA also issued a $5,000,000 Senior Subordinated Convertible Promissory Note (the Convertible Note) which bears interest at 9% per annum. The Convertible Note is repayable at IMA's option any time during the nine months ended April 30, 2000 at a value equal to the face value of the Note plus any accrued but unpaid interest. If the Note is not redeemed by IMA prior to April 30, 2000 , or if IMA is in default under the Note and such default is not cured within 20 business days, it will automatically be converted into the number of shares IMA Series C Preferred Stock (Series C) that would convert into 19.9% of IMA's issued and outstanding common stock on August 12, 1999, and the balance of any outstanding indebtedness under the Note which is not converted thereby shall be converted into a Senior Subordinated Promissory Note due one year from the date of conversion and bearing interest at 12% per annum. In connection with the issuance of the Convertible Note, IMA also issued warrants to acquire 425,000 shares of IMA common stock at an exercise price per share equal to the closing price of IMA's common stock on August 12, 1999. The exercise price of the warrants is subject to adjustment pursuant to certain anti-dilution provisions. The warrants are exercisable through August, 2007."