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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX) -- Ignore unavailable to you. Want to Upgrade?

To: WhatsUpWithThat who wrote (84)	3/27/2000 12:13:00 AM
From: keith massey	Respond to of 960

WUWT The company also announced on January 18, 2000 a private placement of 1,866,667 units...Why would this PP not yet be closed? Just paper work in my opinion... The $1.5 million private placement announced on Dec 20, 1999 didn't close until Feb 25, 2000. If you have numerous people involved in a private placement it can often take a significant amount of time and effort to sort out the paper work and receive all the money. For example, the $1.5 million was to 22 people which is a lot of legal forms and wire transfers. However the private placement announce Feb 23, 2000 for $480,000 was to one person and closed March 6, 2000. Of the 9,330,099 shares outstanding, ~5,200,000 are free trading with the public float sitting at approximately 2.0-2.5 million shares. The 5,200,000 number is total issued less those under restriction, both the {901,786} you expect to be cancelled from the Ano deal and those under restriction from recent placements/option awards to insiders? That is correct. After the January 18, 2000 private private placement is closed and if the recently announced options are granted the company will have 10.2 million shares outstanding and 16,620,000 shares fully diluted after the 901,786 are cancelled (which they will be if you check the earn out numbers). I don't expect any more dilution of CPT after this because all money will be coming from the SEG seed capital and IPO. In my opinion 10 million shares is a nice round number, not too many out but enough to keep the stock liquid (how is that for positive <ggg>). There are 5 million shares restricted under the private placements which leaves approximately 5.2 million shares free trading. The insiders own good size portion of the free trading shares and according to the company the estimated the public float at around 2 million shares. After watching it trade the last month and often seeing next to nothing on the offer (depth) I would guess that the float might even be tighter than that. The next PP for $10 million US will increase the shares issued but they'll be also restricted for a period of time, correct? So the float will grow only on IPO...and even then it will not be very large. Am I getting this right? You are normally right on the mark but you are way off on that one. They are spinning off a subsidary for the $50 million US ($10m seed + $40m IPO). CPT doesn't issue a single share, they only sell off part of their ownership in SEG for a large amount of money. So on the day after the SEG IPO, CPT will still have the same number of shares it has out now but will be sitting on an huge amount of cash and assets. The share outstanding won't change, the float won't change, only the amount of money CPT is holding will change. Best Regards KEITH