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.

Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (3818)	10/2/2002 3:37:05 PM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 12465

In June 2002 RMEC entered into a credit agreement for $40 million with Marathon USA Corporation.... A fee of $100,000 was paid to Marathon and 8,000,000 shares of stock issued to Marathon in contemplation of the closing of the loan. Let me get this straight. RMEC really truly thought $5 per share was a reasonable valuation on their stock (it's now trading at .03)? And, if for some bizarre reason they did, that Marathon was willing to hand over $40MM for a company with total assets of $27,377 (as of 6/30/02)?! And how exactly did RMEC come up with the $100K? Ummm... - Jeff