Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Zia Sun(zsun) -- Ignore unavailable to you. Want to Upgrade?

To: who cares? who wrote (4980)	10/13/1999 5:22:00 PM
From: StockDung	Read Replies (2) \| Respond to of 10354

From Loraca Form 10 On February 23, 1998, Loraca acquired all of the issued and outstanding shares of common stock of NMMC (formerly New Mexico Mortgage Company, Inc.) pursuant to an Agreement and Plan of Reorganization. Loraca was organized on March 11, 1996, and had no revenues or operations prior to the merger with NMMC. The acquisition was a transaction by an issuer not involving any public offering. So, this means Loraca, previously called Laraca, was organized AS A SHELL. It had (and has) no value as a business, apart from the value of NMMC. The investment decision by Loraca was made by investors who were provided with access to information regarding Loraca and NMMC necessary to make an informed investment decision. In connection with its acquisition of NMMC, Loraca issued an additional 6,200,000 shares of Common Stock. Of such shares, 2,100,000 were issued pursuant to Section 4(2) of the Securities Act to Mr. Baca, an accredited investor, in exchange for all of the outstanding shares of NMMC held by Mr. Baca and his wife, Susan Baca. The remaining 4,100,000 shares were sold to offshore investors pursuant to Regulation S under the Securities Act. The shares were issued at the effective price of $0.5183 per share, or $3,213,415 in the aggregate. So, LCAI acquired its operating business for 2.1 million shares valued at .5183 per share. This means that NMMC was sold by Mr. Baca for a paltry 1.08 million dollars. For the sake of argument, lets believe that Mr. Baca is some sort of business genious (ha, not likely, but for the sake of the idiot touts we will believe it), maybe NMMC is worth double that today. Lets assume NMMC is worth $2 million, that is a generous increase from its value when it was folded into the shell. LCAI has approx. 7 million shares outstanding as of June 30, 1999. At today's price that is a market cap of approx. $40 million, FORTY TIMES what Mr. Baca himself valued his company at in 1998! This is RIDICULOUS. We also know that the touts and SCUM have their cheap shares at this low price. The deal was done quite some time ago, so the shares are likely free trading. Notice also that they were Reg S shares, the very same type of stock that Cragun and his crim crew sold to unsuspecting European and Asian investors in Bestway USA aka ZSUN, as IPO stock. From inception until September 30, 1999, Loraca has granted options to purchase 425,000 shares of Common Stock. The option grants were all to employees in transactions exempt from registration pursuant to Rule 701 promulgated under the Securities Act. Pursuant to the Company's contract with its technology developer, J. A. Young & Co., the Company has agreed to issue shares of Common Stock with a market value equal to 40% of J. A. Young & Co.'s monthly invoice to the Company. J. A. Young & Co. is an accredited investor as defined under Rule 501(a) under the Securities Act, and the Company contemplates issuing Common Stock to J. A. Young & Co. pursuant to Section 4(2) of the Securities Act. This is very interesting stuff. LCAI is such a crappy company that JA Young, whom they hired, in a press release of 8.24.99, to develop a web presence, is getting an equity sweetener IN ADDITION to their monthly billings. Can't LCAI afford to pay JA Young their full fee in cash? Why isn't LCAI using Tony Tobin's team of talented, low-wage, Phillipino programmers at Momentum?