"Powerlan purchased a company called IMX 12 months ago. The sale agreement calls for a final consideration payment based on IMX's earning for the year, to be made 1 July, 2002 amounting to $5M and the balance of the consideration to be made by way of issuing Powerlan shares after the audit of IMX. IMX has by far exceeded its profit forecasts and now it is anticipated that the amount payable in shares is in between $20M to $25M. This information and its dilutionary effect on Powerlan were disclosed in detail, in the Powerlan's Bidders Statement (para 3.5.2) regarding the Clarity on market takeover. Powerlan is now in negotiations with IMX to quantify the final earnings number and also discussing alternatives to the original share issue consideration. These negotiations are expected make at least 4 weeks before an outcome is concluded. This information will be released to the market on conclusion of these negotiations."
The capitalisation of PWR is only a little over $40m so if IMX get $25m in stock (new stock!) then ...
Sort of an internal reverse takeover?? Plus it would be extremely dilutionary.
PWR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)