OCA (2)
Question: Does OCA have any flexibility?
by: dc8409
Long-Term Sentiment: Hold 08/29/05 05:25 pm
Msg: 37447 of 37781
I saw a post where they might issue warrants. Can they issue anything without filing their financials with the SEC? Where is that at? How did their investigation come out? I have not been to this board in a while. Any help would be appreciated.
Response
I am the one who suggested issuing warrants. I am not sure if the company will do it or not.
The board can simply issue stock warrants to existing shareholders --- 1 warrant for every share --- that is fair for all. The total funds raised would be $50 million that might be used to pay off most of the existing loan, and leaving some money for future growth.
After warrant excercise, existing shareholders will own the same percentage of the company --- there is no dilution for them. For these who do not have additional money to excercise the warrants, they can sell part of their OCA shares at higher price (price will adjust fast to a reasonable level after the announcement of company's intentions), and use it to excercise the stock warrants that go with the remaining shares. They would own a lesser percentage of OCA (that, with the additiona fund infusion, would be much more financially secure).
I think filing would be needed but not the kind for IPOs or for issuing additional shares or options to the public.
The company is required to file the annual reports and quarterly reports. I guess we need to wait for several more weeks for OCA to complete them.
The idea of issuing warrants will be conditioned on the following ---
1. the businiess still makes sense; i.e., there is value to the stock before warrants are issued). I believe this is the case. By putting up $3 million personal money into OCA, the CEO clearly thinks there would be value to the company;
2. the company could not obtain a $90 million new loan (to pay off the older loan that expires in next January).
by: dc8409
Long-Term Sentiment: Hold 08/29/05 05:25 pm
Msg: 37447 of 37781
I saw a post where they might issue warrants. Can they issue anything without filing their financials with the SEC? Where is that at? How did their investigation come out? I have not been to this board in a while. Any help would be appreciated.
Response
I am the one who suggested issuing warrants. I am not sure if the company will do it or not.
The board can simply issue stock warrants to existing shareholders --- 1 warrant for every share --- that is fair for all. The total funds raised would be $50 million that might be used to pay off most of the existing loan, and leaving some money for future growth.
After warrant excercise, existing shareholders will own the same percentage of the company --- there is no dilution for them. For these who do not have additional money to excercise the warrants, they can sell part of their OCA shares at higher price (price will adjust fast to a reasonable level after the announcement of company's intentions), and use it to excercise the stock warrants that go with the remaining shares. They would own a lesser percentage of OCA (that, with the additiona fund infusion, would be much more financially secure).
I think filing would be needed but not the kind for IPOs or for issuing additional shares or options to the public.
The company is required to file the annual reports and quarterly reports. I guess we need to wait for several more weeks for OCA to complete them.
The idea of issuing warrants will be conditioned on the following ---
1. the businiess still makes sense; i.e., there is value to the stock before warrants are issued). I believe this is the case. By putting up $3 million personal money into OCA, the CEO clearly thinks there would be value to the company;
2. the company could not obtain a $90 million new loan (to pay off the older loan that expires in next January).
posted by jajabin at 3:07 PM
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