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.

Technology Stocks : Blank Check IPOs (SPACS) -- Ignore unavailable to you. Want to Upgrade?

To: John Carragher who wrote (292)	9/18/2005 6:27:02 PM
From: Glenn Petersen	Respond to of 3862

In 2004, Clarke taught a course on foreign policy with Randy Beers. nndb.com nndb.com Condi’s ears must have been burning. The three companies filing S-1’s on Thursday are all being underwritten by HCFP/Brenner Securities. The three deals have been structured somewhat differently from most of the other blank check offerings that preceded these filings. The majority of the other offerings have allocated 20% of their shares to the insiders, who have generally paid $25,000 for their stock. In most instances, the insiders have also committed to purchasing a large number of warrants in the open market after the offerings has been completed, often in amounts in excess of $1 million. In the HCFP deals, the insiders have purchased only 100 common shares at a total cost of $500. However, unlike the other offerings, they have also purchased a large number of warrants prior to the completion of the IPO. The insiders of Global Services Partners purchased 3,095,000 at a total cost of $153,750 and the insiders of Good Harbor Partners and Israel Growth Partners each purchased 4,950,000 warrants at a total cost of $247,500. They are not being required to purchase any additional warrants after the IPO. I like the way HCFP has structured these deals. The insiders have all been required to put more “skin” in the game, and their potential upside is heavily dependent upon their ability to source a deal that will elevate the price of the common stock. That is not the case with most of the other offerings, where the insiders are receiving what is essentially a finder’s fee for sourcing a deal.