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 : RETIX (RETX) Perhaps Another Acquisition Target For CSCO? -- Ignore unavailable to you. Want to Upgrade?

To: Dana Johnson who wrote (989)	1/16/1998 11:25:00 AM
From: Delta2j	Read Replies (1) \| Respond to of 1119

Can someone explain whether they think RETX could have gotten a better deal? For instance is the 19.9 percent a decent figure? Also what are the chances that Sonoma Systems will turn out to be a better investment than Vertel in the long run? ...The new investment includes the issuance of preferred stock by Sonoma Systems and provides $9 million of additional cash for intended rapid expansion of their product lines and aggressive market development efforts. As a result of this external financing, Retix(Vertel)'s ownership in Sonoma Systems, after giving full effect of currently reserved or issued employee stock options, will be 19.9 percent. In addition to its equity ownership, Sonoma Systems will issue Retix(Vertel) $1 million in redeemable, non-voting, non-converting preferred stock. ''This investment will allow Retix to address aggressively the TMN (telecommunications management network) market opportunities at Vertel while retaining an interest and participating in the future success of Sonoma Systems,'' said Bruce Brown, president and chief executive officer of Retix(Vertel).

To: Dana Johnson who wrote (989)	1/20/1998 6:38:00 PM
From: LLCF	Respond to of 1119

<Sonoma deal is inked!> Well, they certainly delivered on the promise of something happening in a couple of weeks! So they ejected 80% Sanoma for a "very" subordinated million bucks and a promise to inject 10 million into something they own 20% of (value $2 mill.). The deal values 20% of Sanoma at $3 million? Looks like they basically have a long term call option and got rid of the cash drain that it caused on Vertel. Can't be bearish for Vertel IMHO. I'm very surprised the stock is so humdrum. All the big boys were on the conference call and apparently watching the company. They don't seem to be so bullish on Vertels chances, or what? Competition comming in? DAK