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

To: ralfph who wrote (493)	8/17/2000 1:50:44 AM
From: keith massey	Read Replies (1) \| Respond to of 960

I have been keeping up a steady conversation on the Stockhouse thread which is very busy and have rudely been leaving the info. off this thread. I actually like SI much better then stockhouse but there are far less people on this thread to bounce ideas off. I talked with the company the other day and asked about the CIBT listing. I was informed that everything is coming along great (filings, etc.) and to expect the US listing of CIBT later this year. It seems like everyone has forgot we have a CIBT listing just down the road. I thought it was a good time to re-post this one..... According to the latest news on CIBT, CPT is going to hold approximately 9 million shares of this new E-Learning company which will be listing in the US. It doesn’t take a rocket scientist to realize that if a pre-IPO financing is being completed at $1.50US ($2.20Cdn), then it would not be unreasonable to expect that the minimum price on open to be at least $2.25 - $3.00 US. At $2.25 - $3.00US, CPT’s 9 million shares will be worth a cool $30 - $40 million Cdn. However if you read a little farther into the release, you will notice a few items which I find far more interesting. “ addition, this group is also obligated to raise an additional $2-million (U.S.) (or greater) at a price not less than $3 (U.S.) per share.” So . . . If they are going to raise money at $3.00 US or higher you would expect that there will a significant push to see the share price trading at a level of at least $3.50 - $4.00 US. At $3.50 - $4.00 US, then CPT’s 9 million shares would be worth $47 - $54 million Cdn. But it gets better as you read on . . . “This agreement also includes a clause which states that not less than 750,000 of the shares currently outstanding in VAC are to be escrowed and released in accordance with a phased in performance-based formula. This performance clause requires that a significant portion of these shares will not be released from the lock up position until the closing of the $2-million (U.S.) private placement, and (i) having an averaged trading price of $5 (U.S) or higher for 60 days, or (ii) a successful listing of the new company's shares on a major US exchange.” The Village III Acquisitions Corporation Form SB-2, dated March 18th, 2000, can be found on 10Kwizard (http://www.10kwizard.com/)... According to the SB-2, there are currently 855,500 shares currently outstanding in the company that CIBT will be merging with. Almost all of these outstanding shares (90%) are owned by Jack Augsback and his associates. I am just now just in the process of doing my DD on this group but it appears that they are a very experienced and successful group. What I really like is that in order for this group to get all their shares free trading, they will have to meet all the criteria stipulated in this announcement - which means $5 US or higher share price and a major US listing for CIBT. At $5.00 - $6.00 US, CPT’s 9 million shares would be worth $67 - $80 million Cdn. Now, add to all of this the fact that CPT is also planning to spin off their other subsidiary - SEG through a IPO on the Hong Kong GEM exchange, the recent purchase and expansion of IRIX and that CPT is also sitting on a pile of cash with no debt and I find it hard to believe that someone thinks this is not undervalued at this level.