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

To: Coz who wrote (12686)	4/17/1998 6:48:00 PM
From: Mel Viticus	Read Replies (1) \| Respond to of 27968

Kramer, uh, I mean Cosmo: It's been pretty much been decided by the thread that the conversion ratio is not set by any person, but is the actual ratio relationship between the two share prices at the moment of the merger. MV

To: Coz who wrote (12686)	4/17/1998 6:52:00 PM
From: Leroyt	Read Replies (1) \| Respond to of 27968

Cos, Ira originally stated that the reverse merger would be a 1:4 for FAMH shares (meanging for very 4 shares of FAMH you'd get 1 share of ATXI). Also Note that this would lead to a dilution of less than 15% for FAMH although since ATXI has hard assests it's not really a dilution. If the reverse is for less thatn 1:4 then the about of "dilution" to FAMH will be less. So the story will only get better than 1:4 and the dilution will be less than 15%. (maybe as low as 5%). Also note, there are significant costs in getting onto NASDAQ so this is the quick and cheap way to do it. From the CC yesterday, (CALL if you haven't heard it) the merger ratio will be set by share price at the time of the merger. Next week, I think financials for 1997 will be release and FAMH will go up to $1.00. ATXI, in the meantime, will drop to about $1.50 (IMHO). Therefore the split will be 3:2 instead of 4:1. So for every 3 shares of FAMH you get, you'll get 2 shares of ATXI. That's my opinion. But, overall, the value of the stock is at lest 85-90% determined by the EPS of FAMH so this reverse merger ratio is, in reality, a minor factor. later, leroyt