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Gold/Mining/Energy : SMM on TSE - Simmonds Capital -- Ignore unavailable to you. Want to Upgrade?

To: Ed Pakstas who wrote (229)	5/7/1999 12:24:00 AM
From: Shaw	Respond to of 372

Ed, SMM Mkt Cap ~15M(cdn) AD Holdings ~6.8M(cdn) Per Share~$.45 (cdn) I believe this is correct. When ADCM was trading at $0.40 in early April (?) SMM was trading around $0.85. SMM's book value has grown (due to the ADCM increase) by approximately 4.5M cdn since this time and their mkt cap has only grown by about 900K. This should be considered by analysts/followers as a pure arbitrage play if my numbers are correct. Am I doing something wrong here????? Also, if these stocks traded in tandem, a 0.20 rise in ADCM would translate to a corresponding 0.06 rise in SMM based purely on market caps and book values. Also, a small premium should be added for the options to purchase more as the stock rises (I guess IF ADCM rises is more appropriate). Then these options will have an intrinsic value. The following is based on the following assumptions: 1.5 cdn/us; SMM-T owns wholly 3.3 million shares of ADCM; No values given for preferred share or option holding. If the preferred shares valued at 1M and options are added SMM's market cap numbers should be adjusted and there is even more of an arbitrage play. Comments are appreciated. If I did something wrong give me a heads up. Dean PS: I based the above also on SMM trading at cash value. A further premium may be appropriate.

To: Ed Pakstas who wrote (229)	5/7/1999 12:31:00 AM
From: Jim P	Respond to of 372

Simmonds Capital CEO purchases shares of American Digital Simmonds Capital Ltd SMM Shares issued 17,392,549 May 6 close $0.89 Thu 6 May 99 News Release Mr. Graham Simmonds reports John Simmonds, chief executive officer of American Digital Communications, Inc., and a group of associates have purchased 4,230,906 common shares of ADC in a private transaction. The shares were held by an international financial institution. Mr. Simmonds and his immediate family personally acquired 665,906 common shares of ADC with the rest being taken up by other members of the group, including close business associates and investors familiar with the company. Mr. Simmonds is also the chief executive officer of Simmonds Capital Ltd., a diversified management company based in Toronto, Canada. Simmonds Capital has a 16 per cent beneficial interest in ADC including 3.3 million common shares, $1-million preferred shares which are convertible at $1 per share, and warrants to purchase 500,000 common shares at $2 per share. In addition, Simmonds Capital has the right to receive up to $1.5-million in an earnout from the prior sale of the TrackPower business to ADC. The majority of the ADC common shares held by Simmonds Capital are subject to a prior option grant. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com