All, here's an amusing news report: IDMC (doesn't know why its stock price is falling (now at 4 3/4).
Some of us know already that they have a discounted convert that might have something to do with it :-)
The number of shares that were registered in November was just
humongous, in comparison to the shares outstanding, and with the
stock price down about 1/3 since then, the dilution will only get
worse.
Here's the news story:
Subject:
IDM Environmental Can't Explain Weakness In Its Stock Price
Date:
Wed, 4 Feb 1998 09:27:40 -0800 (PST)
News Alert from Dow Jones Online News via Quote.com
Topic: (NASDAQ:IDMC) Idm Environmental Corp,
Quote.com News Item #5297352
Headline: IDM Environmental Can't Explain Weakness In Its Stock Price
======================================================================
SOUTH RIVER, N.J. -(Dow Jones)- IDM Environmental Corp. (IDMC) said
it knows of no reason for the decline in its stock price, and said it is
"surprised by the steep drop."
IDM said Wednesday it is "in the strongest position it has ever been
in to achieve our growth objectives." IDM said each of the programs it
has disclosed within the past few weeks is expected to provide
"significant and sustainable revenues and profits for at least the next
10 to 15 years."
The programs include projects in Germany, El Salvador and the
Caucasus nation of Georgia.
IDM's Nasdaq-listed stock was trading midday Wednesday at $34.9375,
down $0.9375, or 2.2%, on volume of 597,100 shares. Average daily volume
is nearly 355,000 shares. The stock has steadily declined in price since
closing at $6.375 on Jan. 27.
IDM provides plant relocation, environmental remediation and plant
decommissioning services.
=============================
Here's an excerpt from the S-3/a late last fall:
CALCULATION OF REGISTRATION FEE
Proposed maximum Proposed maximum
Title of securities to Amount to offering price per aggregate offering Amount of
be registered registered (1) share (2) price registration fee (3)
---------------------- ---------------- ------------------- ------------------ --------------------
Common stock,
$.001 par value 7,000,000 $ 6.28125 $ 43,968,750.00 $ 13,323.86
====================== ================ ==================== ================== ====================
(1) Includes a presently indeterminate number of shares issued or issuable upon
conversion of or otherwise in respect of Registrant's (i) Series B 7%
Convertible Preferred Stock, (ii) 7% Convertible Notes due January 31,
1999, (iii) 2,675,000 Warrants issued in conjunction with the Notes, (iv)
100,000 Warrants issued in conjunction with the Preferred Stock and (v)
100,000 stock options.
(2) Estimated solely for purposes of calculating the registration fee pursuant
to Rule 457(c) based on the average bid and asked price as reported on
Nasdaq on November 18, 1997.
(3) $14,649.62 of the registration fee was previously paid with the initial
filing of this registration statement and amendment number 2 thereto.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a),
MAY DETERMINE.
PROSPECTUS
IDM ENVIRONMENTAL CORP.
7,000,000 Shares of Common Stock
$.001 par value
All of the shares of Common Stock, par value $.001 per share ("Common
Stock"), of IDM Environmental Corp., a New Jersey corporation ("IDM" or the
"Company"), offered hereby are being offered for resale by certain stockholders
of the Company (the "Selling Stockholders") as described more fully herein. The
Company will not receive any proceeds from the sale of the shares offered
hereby. The Common Stock of the Company is quoted on the Nasdaq National Market
under the symbol "IDMC." The last reported sales price of the Company's Common
Stock on the Nasdaq National Market on November 18, 1997 was $6.25 per share.
The shares of Common Stock offered hereby by the Selling Stockholders
consist of a presently indeterminate number of shares issued or issuable upon
conversion or otherwise in respect of (i) 300 shares of Series B 7% Convertible
Preferred Stock (the "Series B Preferred Shares"); (ii) $3,025,000 of 7%
Convertible Notes due January 31, 1999 (the "Convertible Notes"); (iii)
2,675,000 Warrants issued in conjunction with the Convertible Notes (the "$3.00
Warrants"); (iv) 100,000 Warrants issued in conjunction with the Series B
Preferred Shares (the "$2.40 Warrants") and (v) 100,000 stock options (the
"Stock Options"). For the purpose of determining the number of shares of Common
Stock to be registered hereby, the number of shares of Common Stock calculated
to be issuable in connection with the conversion of the Series B Preferred
Shares and the Convertible Notes is based on an average closing bid price of the
Common Stock on the five trading days ended November 18, 1997 ($6.48125 per
share), and has been arbitrarily selected. The number of shares available for
resale is subject to adjustment and could be materially less or more than such
estimated amount depending on factors which cannot be predicted by IDM at this
time, including, among others, the timing of conversion of the Series B
Preferred Shares and Convertible Notes and the future market price of the Common
Stock at the time of conversion. This presentation is not intended, and should
in no way be construed, to constitute a prediction as to the future market price
of the Common Stock. See "Selling Stockholders" for a description of the rights
and conversion terms of the Series B Preferred Shares, Convertible Notes, $3.00
Warrants, $2.40 Warrants and Stock Options. |
