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Gold/Mining/Energy : Innomat Solutions Corp (INAT - was Stackpal, STAX) -- Ignore unavailable to you. Want to Upgrade?

To: terry astle who wrote (314)5/12/1998 6:31:00 AM
From: reg  Respond to of 580
 
Talked to Mr. Kavanagh and the consolidation will not take place until the timing is right. He acknowleged that consolidations usually suck. One priority is to get off the Cdn network. Another target is 10 million in revenues for 98.



To: terry astle who wrote (314)5/12/1998 11:52:00 AM
From: PAUL KAVANAGH  Read Replies (8) | Respond to of 580
 
Hi Terry

These are good points. However we are very well aware of the impact that a consolidation will have. We are obviously working to be in a position to show very good results post consolidation to support the new price level. If we don't we will not consolidate. The dilution created over the past several months was costly but essential if we are to get some real upside growth potential. The TPF technology and the Brunswick acquisition represent this potential and I believe the price we had to pay will be well worth it in the long run.Even after all the shares convert from these debentures , realistically we would end up with approx. 70.0 million shares. On a 10-1 roll back this would be 7.0 million at new price ( based on todays trading) of $ 1.40. This still only gives a market cap. of $ 9.8 million which is less than one times our projected 1998 revenue.

If you have any thoughts please share them with me.

Thanks for your interest.
Regards

Paul K.



To: terry astle who wrote (314)5/12/1998 1:39:00 PM
From: Maurice Siu  Read Replies (1) | Respond to of 580
 
I don't know much about "Consolidation" ....what actually happens and why is it not good for the stock?



To: terry astle who wrote (314)5/12/1998 11:39:00 PM
From: Tom McIlwain  Read Replies (3) | Respond to of 580
 
For an uplifting example of a 1 for 10 share price consolidation that really worked, let me suggest that you take a look at the stock Smart Tire Systems (SES,V). (formerly Unicomm Signal)

Excellent thread for this stock on SI by the way although you would have to go back quite a few posts now to see the discussions re the consolidation process.

Tom McIlwain


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