To: equalizzer who wrote (948 ) 4/8/1999 12:09:00 PM From: Eric Fader Respond to of 1530
I just posted the following on a couple of SI threads: Anyone care to put away $2,000 for at least 6 months for a shot at what I believe will be a 25-bagger IPO? Read the risks at the bottom of this post. I am not affiliated with the company and will not directly benefit if anyone buys, even though I am a major shareholder. Appropriate Health Services.com, Inc., doing business as StayHealthy.com, is a private company that is merging with Avalon Group, Inc. (AVAL on the OTC-BB). The vote to approve the merger will occur at a shareholders' meeting on Monday night, and my understanding is that AVAL is delisting itself from the Bulletin Board after tomorrow. AHS intends to do an IPO, with one of the three MAJOR underwriters with whom they've been speaking, in 6 months. Rather than getting into the IPO by buying AVAL, which a number of people have been doing at .27, .28 and .30 recently even though AHS in effect is buying out AVAL at .25, a smart and patient person might act quickly and grab some of the few remaining shares in AHS's current Rule 504 private offering. The price for the 504 shares is $2.00, which is equivalent to .25/share of AVAL because the conversion rate is 1:8. Anyone who might be interested in the offering can PM me for the phone number of John Collins, CEO of AHS. The catch is that they intend to close out the offering tomorrow, because they must wait 6 months between the 504 deal and the IPO and want the clock to start ticking, so reply TODAY. In addition to the StayHealthy.com website, which is in the midst of being updated for e-commerce, AHS has unique technology which should help them create the first PROFITABLE Internet health/fitness/wellness enterprise. A 5-minute call to Collins should give anyone the gist. Limited info may be found at the Avalon thread, although most of the "good stuff" has been disseminated only by email for competitive reasons. MAJOR RISKS (there are others): No public market for your shares of AHS until the IPO. No assurance that market conditions and other factors will permit an IPO ever to occur. The underwriters could require a "lockup" period for your shares. Our minority position in AHS creates the possibility that management will screw us all, with limited or no recourse. As stated, I own a bargeload of AVAL, but DON'T buy AVAL. I'd buy the 504 shares if I were investing today. I believe that AHS/StayHealthy will be one of the big IPO successes of 1999. -Eric Fader