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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Buster who wrote (6263)	3/13/1998 1:31:00 PM
From: PennyLover	Respond to of 27968

Thursday March 12, 6:28 pm Eastern Time Firamada in merger talks, may join Nasdaq NEW YORK, March 12 (Reuters) - Firamada Inc said it is in talks on a reverse merger with an unnamed Nasdaq-listed company that would give Firamada nearly 100 percent ownership of the company and leave Firamada with a place on the Nasdaq exchange. In a statement, Firamada said that talks are moving quickly on the acquisition, which would be accomplished by exchanging roughly four shares of Firamada stock for each share of stock in the Nasdaq company, which is ''close to being delisted.'' Firamada is a New York-based corporate staffing company. Reached by phone, Firamada President Ira Monas said that a final agreement should be inked by early next week, at which time Firamada will announce the deal. He declined to name the target company, which he described as ''a holding company not in our industry.'' ''Firamada is remarkably fortunate to find a Nasdaq company close to being delisted, but with a stock price that has maintained substantial value despite no earnings,'' Monas said in the statement. ''These terms would be exceptionally favorable for Firamada and our shareholders as this Nasdaq company brings no liabilities and a very small number of outstanding shares,'' Monas stated. He projected that the post-merger company would have adjusted 1997 earnings of $0.36 per share based solely on Firamada's earnings. ''With most industry multiples currently running in the 25-35 range, we would anticipate a significant appreciation in the resultant value of Firamada's Nasdaq shares,'' Monas said of the company's possible price-to-earnings ratio. He added that, ''We appreciate the patience our shareholders have shown while we adjust to a higher business atmosphere resulting from our growth and acquisitions. We were preparing the final financials last week, for release to the shareholders, when we were offered these exceptional terms.'' -------------------------------------------------------------------------------- More Quotes and News: Firamanda Inc (OTC BB:FAMH - news) Related News Categories: US Market News, options