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Technology Stocks : INFORMATION ANALYSIS (IAIC) - YEAR 2000 Date Remediation -- Ignore unavailable to you. Want to Upgrade?


To: TEDennis who wrote (1211)1/15/1998 12:26:00 PM
From: ctirry  Read Replies (1) | Respond to of 2011
 
It can be viewed as good news for at least two reasons-

1) if they didn't get the $ they (IAIC) could go out of business-that would clearly be bad news

2) the private placement means that due diligence (eg., discussion with Computer Associates, etc.) was done by investors such that they put $6 million into IAIC. Remember that although the shares in the private placement are given for less than market value, they are restricted for a period of time; that means the investors believe the price will increase by the time the restriction is over.



To: TEDennis who wrote (1211)1/15/1998 1:49:00 PM
From: RikRichter  Respond to of 2011
 
TED,

With only 6.2 million shares outstanding prior to the private placement and $6 million raised, the deal wouldn't seem to be overly dilutive to existing shareholders.

New capital is the seed for business growth ... or as they say, it takes money to make money!

I suspect with the first two UNICAST/2000 products on the market for CA's clients (ADS and CAS), two more Y2K products for CA expected (Easytrieve and Ideal) and Y2K remediation services already in progress, Q1/98 appears to be off to a good start for IAIC.

Also, having Cruttenden Roth as a co-manager of the PP in the picture brings a new awareness to IAIC that was not previously present.

TED, thanks for stopping by! IAIC is up 3/4 on the bid to 17!

Regards.

Elliot