I'm hurt nobody responded to my question about what RMTR has in common with CMYN, CXI, KKRO (now KKRE), ORVX, PPH, QDEK, and TCLN for it is an important relationship. As investors in Ramtron and under the present situation wouldn't you want to know these are some of the companies left bloodied and dying after playing the preferred financing game with Cappello and Company.
With so many companies that Cappello and Company have graciously stepped in to help out of their fortunes and into their misfortunes it begs the question how did Cappello and Company become the largest "small-cap" common stock investor on the block? Dare we think that one man's gain is anothers loss?
Now let's not be hasty. Cappello indicates it has helped out 25 companies on their home page. To date I have identified 8 of those companies -- including Ramtron. All companies have had their life's blood sucked but I'm hoping somebody can point me to a company that is actually better off for having met Cappello and Company before we begin drawing conclusions.
Anyway, here is the tale of the tape.
CMYN - Casmyn
Year: 5 1/8 to 1/64; delisted 7/31
A Cappello now chairman.
The good news is, there is still a little blood left. Here it is... Pursuant to the Preferred Stock Investment Agreement the Company is required to pay a penalty in cash of an amount equal to 3% of the Total Purchase Price of Shares during any period in excess of 30 days that the Common Stock of the Company is not listed and traded on NASDAQ. Given that the Company's common shares have been officially delisted from Nasdaq on July 31, 1998, a penalty of $810,000 may be payable on September 4, 1998 and monthly thereafter. biz.yahoo.com 
CXI - Commodor Applied Technologies
Year: 6 3/4 to 3/16; Last 5/8
KKRO (now KKRE) Koo Koo Roo
Year: 4 1/16 to 1/2 Last: 25/32
10/30 merges with Family Rest.
11/03 changes name to Koo Koo Roo Enterprises.
A Cappello, Director
ORVX - Oravax
Year: 3 3/8 to 3/16; Last 5/16
11/17 delisted from NASDAQ, now trades OTC
Looking to merge with Peptide Therapeutics Q1 1991
PPH
Year: 17 15/16 to 5/8; Last 13/16 (11/13/98)
files Chapter 11 Bankruptcy, 11/19/98
QDEK - Quarterdeck
Year: 3 to 1/4; Last 1/2
Acquired by Symantec 11/4/98
55 million shares (about 60 percent) were tendered when Symantec's tender offer expired. Symantec intends to acquire Quarterdeck's remaining shares through a cash merger at the tender offer price of $0.52 a share.
TCLN
Year: 3 1/16 to 15/32; Last 1 1/32
Here's the Giant killer in TCLN last bit of financing with Cappello... "Initially, future stock issuances under the equity line were to be priced at a 15 percent discount to the then current market, but on September 17, 1998, in exchange for certain concessions from the investors, future issuances under the equity line will be priced at the greater of a $0.20 discount or a 17.5 percent discount to the then current market price."
biz.yahoo.com
I read this to mean, all trades under a buck will be at 20% discount or greater. Now consider price falls to 1/4, talk about dilution. These guys are hung and don't know it. |
