| To: Andrew H who wrote (216) | 7/2/1998 5:27:00 PM | | From: JC Reddy | | | |
I just spoke to Prima Capital, IR firm for KANA. Didn't get
to speak to anyone at KANA.
Prima told me that the company did make a 504 placement for
approximately 1.5 million shares to raise the capital of $1
million ($0.75/share). Some shares were sold above that and
some were (are being) sold at lower levels. Prima says the
sale is over and they raised the capital they needed.
There are no more 504 placements. There is going to be a
release explaining this early next week.
This placement makes the outstanding shares 11.5 million and
the float 4.5 million (previously 3 million).
Prima thinks this is the bottom level we will see for KANA.
The value has been diluted by the 504 offering and now it
shoud turn around as the newly raised capital is used to expand
the business.
This is the info I got.
Although it is common for BB companies, the company should have
told investors about the coming 504 offering. Ones who got the
shares at high prices suffer the most because of dilution, but
hopefully the company will invest the new capital appropriately
to raise the shareholder value.
For new buyers, this might be an opportunity to buy in, although
I don't know at what level this is going to bottom out (it has been
around this level for a while now, so I believe it has bottomed out).
When KANA calls me back, I am going to ask several questions
including: (1) how they are going to use the new capital;
(2) how much they are paying to Prima (stock or cash);
(3) why they did not take credits for building the business
instead of a 504 placement; (3) why they offered 504 without
informing the investors (many BB companies do that, but I will
ask anyway), and other "future prospects" questions.
Overall, this is a good level to buy (watch it and see if it still
goes down), but I think it was unfair for the investors who bought
it at high levels > $1,$2
Decide for yourselves, call the company (800-831-2671) or Prima
(800-600-8599). Also wait for the news next week.
- JC |
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| To: JC Reddy who wrote (237) | 7/2/1998 6:23:00 PM | | From: Andrew H | | | | |
Thanks for the call and relaying the info. I hope these guys do a better job in their future financings. They certainly botched this one. From today it looks like there are still some cheap shares for sale. But most of the selling must be over. Hopefully the stock will begin to recover next week. |
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| To: Gator who wrote (236) | 7/2/1998 7:13:00 PM | | From: gammaray | | | |
hi gator, I used to sell vitamins in a pyramiding type operation. Course the euphamistic terminology then was muli-level. You can read the Kana affiliation with Future in either of two ways. 1.) sinister plot at its very worst or 2.) a company that will hopefully sell product for Kana.
I don't mean to oversimplify but the pyramiding scheme has nothing to do with Kana. You have to start at the bottom to get to the top. It certainly appears that Future has the distribution network to get some product moving for kana.
I can tell you that top management is not drawing salary on a regular basis. This tells me of a strongly dedicated management that is hungry and is going to succeed. I'm looking ahead.
Neil |
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| To: KLAW97 who wrote (241) | 7/5/1998 11:21:00 PM | | From: CoffeePot | | | | |
Assuming that the 1.5mm shares in the 504 have been sold then yes we might have bottomed out though the lack of a preannouncement on the registration speaks volumes for KANA management. Just another day in OTC BB world. |
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| To: CoffeePot who wrote (242) | 7/5/1998 11:38:00 PM | | From: JC Reddy | | | |
This is with regards to the press release on May 11th. I asked
Alex Kanakaris (CEO) about the status of the deal with
KeyTrade.com and their contact and here is what I got. If
someone wants to follow this up with KeyTrade.com, there
is a number below. I am still waiting for his answers to
my questions regarding the 504 placement.
====
Hello:
We are in the final stages of developing the keytrade.com web
site right now, and they should have a temporary page up on
that domain in about 2 weeks. The "live" site should be up in
August.
KeyTrade, Inc. is located in Melville New York, and can be
reached at 800-826-0539. The contact is Anthony Imbo with
Glen Michaels Financial.
John McKay
Kanakaris Communications
310.589.2767
www.kanakaris.com
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| To: KLAW97 who wrote (244) | 7/6/1998 12:31:00 PM | | From: Nancy W | | | |
Well, I was waiting for someone else to ask this but guess it's up to me.... Can you please share with us the interesting news you heard? Some encouragement would be very good right now!
Thanks,
Nancy |
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