ILNK announced another discounted convert deal. This is the Utah
company that is a MLM long-distance reseller (very low-margin
business) that claims to have a unique technology for LD telephony
over an IP network, and that was formed as a corporation by a reverse
merger into a medical supplier called Medcross. (This all reminds me
of Diana's meat and internet switch business.)
I was been short this one a month or two ago based on broken chart,
little cash, negative cashflowprice multiples that are not low, and
a business combination that doesn't make sense.
This particular discounted convert deal is fairly large: 13% of
market cap.
The stock is just a bit below $5 now.
DRAPER, Utah, July 9 /PRNewswire/ -- I-Link Inc. (NASDAQ:ILNK), an
enhanced voice and data communications company, today announced a single
institutional investor has made a $10 million equity investment in the
company.
In exchange for the $10 million investment, the investor acquired shares
of I-Link non-voting preferred stock, convertible into shares of I-Link common
stock, subject to optional redemption rights in favor of the company.
For the next six months, the preferred shares are convertible at a rate
equal to 110 percent of the current market price of I-Link's publicly traded
shares or 90 percent of the market price at the time of conversion, whichever
is less. After six months, the conversion price will be reset to 100 percent
of the market price of I-Link's publicly traded shares calculated at the six-
month anniversary or 90 percent of the market price at the time of conversion,
whichever is less. The shares automatically convert after three years.
In addition, the investor obtained warrants to purchase 275,000 shares of
I-Link's common stock at an exercise price equal to 120 percent of the current
market price of I-Link's publicly traded shares. The preferred shares carry a
5 percent cumulative dividend, payable in cash or common shares at I-Link's
option, and the common shares underlying both the preferred shares and the
warrants carry registration rights.
"This investment in I-Link reflects the ongoing vitality of the company as
well as sets the stage for the continued successful execution of I-Link's
network deployment strategy," said John Edwards, chairman and CEO of I-Link.
"We plan to continue the rapid expansion of our enhanced voice and data
communications network with its accompanying enhanced services, in addition to
fortifying our customer support operations to keep pace with that growth."
Founded in 1994, I-Link Inc. is an enhanced voice and data communications
company that uses Internet protocol (IP) telephony and its own private network
to provide low-cost long-distance, conference calling, voice mail, fax, e-mail
and other communications services. I-Link's products and services are
primarily offered through a network marketing channel. Through wholly owned
subsidiaries MiBridge Inc. and ViaNet Technologies Ltd., I-Link develops
emerging communications technologies that are used by I-Link and other leading
communications firms worldwide. I-Link is headquartered in Draper, Utah, and
its Web site is located at i-link.net.
SOURCE I-Link Inc.
-0- 07/09/98
/CONTACT: Media: Jennifer Hughes, 801-523-3730, or 801-859-2141 (mobile),
or jhughes@politis.com, or Kevan Barney, 801-523-3730, or 801-949-7001 mobile,
or kbarney@politis.com; or Financial: Karl Ryser Jr. of I-Link Inc.,
801-576-5025, or karlr@i-link.net/
/Web site: i-link.net
Incorporated
Market Guide Quick Facts Report
I-Link Incorporated SYMBOL: ILNK EXCHANGE: NASD
PRICING DATA (AS OF) 07/02/98 RATIOS & STATISTICS
Price 4.88 Price/Revenue (TTM) 3.51
52 Week High 10.56 P/E (TTM) NM
52 Week Low 4.00 Price/Book (MRQ) 8.32
Beta 2.11 Price/Cash Flow (TTM) -0.58
Avg Daily Vol (10 Day) 0.11 Mil ROA (TTM) -134.08%
Avg Daily Vol (3 Month) 0.13 Mil ROE (TTM) -1,289.31%
Current Ratio (MRQ) 0.58
DIVIDEND INFORMATION Total Debt/Equity (MRQ) 0.61
Indicated Annual ($) NA
Yield 0.00% NOTE: TTM = trailing twelve months
MRQ = most recent quarter
SHARE RELATED INFORMATION SHORT INTEREST INFORMATION
Market Cap. ($) 82.846 Mil Current Month 0.365 Mil
Shares Out. 16.994 Mil Previous Month 0.268 Mil
Float 7.300 Mil Short Interest Ratio 3.0 Day
INSTITUTIONAL & INSIDER OWNERSHIP
PURCHASES SALES NET PURCH %OWNED
Institutions (3 Months) 0.102 Mil 0.001 Mil 0.101 Mil 1.3%
Insiders (6 Months) 0.000 Mil 0.160 Mil -0.160 Mil 57.0%
BUSINESS SUMMARY I-Link Incorporated is principally engaged in the
development, sale and delivery of enhanced communications
products and services utilizing its own private intranet and
both owned and leased network switching and transmission
facilities. For the 3 months ended 3/31/98, revenues
totalled $6.3M, up from $2.1M. Net loss from cont. ops. and
applicable to Common rose 83% to $7.7M. Results reflect new
customers & acquisitions, offset by increased depreciation.
REVENUES (Thousands of U.S. Dollars)
QUARTERS 1995 1996 1997 1998
MAR 1,117 609 2,147 6,328
JUN 758 637 3,568
SEP 607 570 4,369
DEC 641 566 3,981
TOTAL 3,123 2,382 14,065
EARNINGS PER SHARE
MAR -0.180 -2.240 -0.400 -0.480
JUN -0.070 -0.210 -0.480
SEP -0.120 -1.270 -0.880
DEC -0.020 -5.320 -7.000
TOTAL -0.390 -9.040 -8.760
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