Well, then, let's return to the topic. The following was posted at Raving Bull:
By: LQQX
Reply To #138 by Eagle
Friday, 17 Jul 1998 , 2:22 AM EDT
Post # of 157
Yes. ACQUEREN's news release was postponed because an acquisition that ACQUEREN has been working on for 3 months is about to be finalized. Daniel decided to put off the news release until he can announce both. The news will add $18,000,000 to EDII's BANK ACCOUNT, instead of the $10,000,000 that ACQUEREN would bring alone. I rarely bet the horse, unless the short term chart by itself is convincing. In this case I am betting the horse AND the jockey. Daniel is putting a conglomerate together before our very eyes, and is growing all the time. They know what they're doing, regardless of what you may hear. I'm in long term. I won't be disappointed. LQQX
Anyone else find this a bit puzzling? It was my understanding that Acqueren, described as a holding company, had only one actual subsidiary, Northeastern Plastics. Why should they begin negotiations for an acquisition at just the moment when they themselves are about to be acquired?
Even assuming that this makes sense, I don't get the part about how this will add $18 million to EDII's coffers rather than $10 million. Just like magic? Free money? No cost to EDII or its shareholders, no charges? And where do these figures come from?
Acqueren was described in one of EDII's recent press releases:
Acqueren, Inc. (closed in escrow)
President - Udi Laska
Address - 630 Fifth Avenue, Suite 800, Rockefeller Center, New
York, New York 10111
Telephone - (212) 332-7102
Founded in 1994. Acqueren, Inc. is a holding company with a substantial liquidity (in excess of $2,000,000) and owns 100% of its subsidiary, Northeastern Plastics, Inc.
From the Notes to the now-vanished financials:
In March 1998, EDII signed a letter of intent to acquire Acqueren, Inc. for 25,000,000 shares of the Company's restricted common stock. Acqueren is engaged in the resale of coated wining The purchase is expected to close in May 1998.
I don't see anything about $10 million here. I see $2 million in unspecified "liquidity". We don't, of course, know whether Acqueren or Northeastern Plastics has debt, and we don't, for that matter, even know what their revenues are. At current prices, 25 million shares of EDII are worth about $11,250,000. Note: this is what EDII is PAYING for Acqueren and Northeastern Plastics. In return, obviously, it gets the companies, their assets, their revenues, and their debt. This isn't money in the bank.
Now: supposedly Acqueren is in the process of acquiring a business that is "worth" (who knows?, as I said, I don't understand anything about the figures produced by LQQX) an additional $8 million. But of course this is not gonna be a "buy one and get one free" deal, is it? Yes! EDII will have to PAY for this, too. With what? More stock? By my calculations, if one figures in the 10% "stock dividend", we're down to about 20 million authorized but unissued... |
