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Technology Stocks : Osicom(FIBR) -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (4681)	1/24/1998 11:41:00 AM
From: Robert Gordon	Read Replies (1) \| Respond to of 10479

ok here is a response ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ During May 1997, 279,207 warrants exercisable at $5.638 held by R II Partners, Inc. and 279,207 warrants exercisable at $5.638 held by Brite Lite Industries, Inc. were exercised in cashless transactions. Of the $1,877,000 liability representing the difference between the closing price of the Company's common shares at exercise and the exercise price $1,567,000 was paid in cash with the remaining $310,000 balance applied to amounts due the Company under indemnification agreements. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Barry and Par exercised their warrents. THey paid the company $1,567,000 for it. But it was worth 1,877,000 on the open market. Thus they made a profit of 310,000. But instead of paying taxes on the profit they had an agreement with the company so that they have to pay it to the company. In the end it was a cashless transaction = no taxes. Remember Barry and Par BOUGHT 279,207 shares... This is insider buying! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ During the year ended January 31, 1997, the Company received non-interest bearing advances from Rand Research Corporation and R-T Investments, Inc. totaling $1,316,000 which were fully repaid through payments and the offset for an 8% demand loan from the Company to R-T Investments, Inc. in the amount of $100,000 (including accrued interest of $5,000). Par Chadha, director and Chief Executive Officer, and Sharon Chadha, Chair and director, own directly and indirectly 100% of the outstanding capital stock of R-T Investments, Inc. and Rand Research Corporation. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ How long did Osicom take to repay the loan given to them by Rand corporation? DId they get the loan on monday and then repay it back on friday? I think the answer is in the paragraph. Rand gave a NON-INTEREST BEARING ADVANCE TO THE COMPANY. But we ended up paying $5,000 of interest on the $100,000 charge for the advance. So my guess is that the advance was paid back one 9-12 month after it was received. So the CEO gave us an advance and we paid 8% interest on it!! Wow I say that was one hell of a deal for us. Maybe Par should have put his million in the stock market and make 25% that year instead? Or maybe a high interest account? I know maybe he should have given us the money for free????? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ During September through November 1996, the Company made non-interest bearing advances totaling $502,000 to Brite Lite Industries, Inc. which were fully repaid in December 1996. Barry Witz, a former director of the Company, owns directly and indirectly 100% of the outstanding capital stock of Brite Lite Industries, Inc. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Giving loans to management so they can exercise their options is very very common. The company gives the person money so they can buy their option from the company. He then sells the shares on the open market and repays the loan. The loan was paid the next month!!