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LAKE HARMONY, PA -- (MARKET WIRE) -- 01/26/06 -- The IO Circuit recommends Immediatek Inc. (OTC BB: ITEK), which announced an investment firm owned by Dallas Mavericks owner Mark Cuban has agreed to buy a controlling stake in a Richardson-based company that sells CD recordings of live concerts minutes after the performances conclude.
Mr. Cuban's firm, Radical Holdings LP, will pay $3 million, or about 68 cents per share, for about 95 percent of Immediatek Inc.'s outstanding shares, according to a filing with the Securities and Exchange Commission. Immediatek chief executive Zach Bair and chief operating officer Paul Marin will remain with the company in their current positions. Mr. Cuban did not respond to an e-mail Wednesday. Mr. Bair declined to comment. Immediatek shares rose 16 cents to close at 19 cents.
Other active stocks are China Development Group Corp (NASDAQ: CTDC), Allion Healthcare, Inc. (NASDAQ: ALLI) and Kulicke & Soffa Industries Inc. (NASDAQ: KLIC)
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Mr. Cuban's firm, Radical Holdings LP, will pay $3 million, or about 68 cents per share, for about 95 percent of Immediatek Inc.'s outstanding shares, according to a filing with the Securities and Exchange Commission.
Posts: 655 | From: Louisville,Ky | Registered: Dec 2005
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E. Among other conditions to the consummation of the transactions contemplated by this Agreement, the Company’s Board of Directors and shareholders are required to adopt and approve, and the Company will cause to occur, a ten-for-one reverse split of the Company’s Common Stock (the “ Reverse Split ”).
Section 1.01 Issuance, Sale and Delivery of the Series A Shares at the Closing . At the Closing (as defined in Section 1.02 hereof), on the terms and subject to the conditions of this Agreement, the Company shall issue and sell to the Purchaser, and the Purchaser shall purchase from the Company, the Series A Shares, at a price of $0.683015632 per share (the “ Share Purchase Price ”) for an aggregate purchase price of $3,000,000 (the “ Total Purchase Price ”), which the Company and the Purchaser agree to be the fair market value of the Series A Shares as of the date hereof. Section 1.02 Closing . The Closing shall take place at 10:00 a.m. (local time) at the offices of Jenkens & Gilchrist, P.C., 1445 Ross Avenue, Suite 3700, Dallas, Texas 75202, on February 22, 2006, or at such other location, date and time as may be agreed upon between the Company and the Purchaser (such closing being called the “ Closing ” and such date and time being called the “ Closing Date ”). At the Closing, the Company shall issue and deliver to the Purchaser a duly issued certificate representing the 4,392,286 Series A Shares. As payment in full for the Series A Shares, on the Closing Date, the Purchaser shall (i) pay $230,000, by wire transfer or check, to the Company, which amount shall be applied as required by Section 5.14 , and (ii) deposit $2,770,000, by wire transfer or check, in the escrow account established pursuant to the Escrow Agreement (as defined herein).
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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Uhh, why do they call it a reverse split?? Doesn't a 10 for 1 mean a forward split? (10 times the shares at 1/10 of the price)
If this is so, what is the potential price movement of the company before the split? I bought in today just above the current price. Things seem to be looking good, but I'm young so I want some insight.
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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I think down. How many CD's can be sold after a concert? A reverse split decreases the number of shares and after the split, the pps goes down again. JMHO.
Posts: 352 | From: Marietta, GA | Registered: Nov 2005
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I'd most likely sell it right after the split. The split won't be until February, though.
The point I'm trying to make is, why did they call it a "10 for 1 reverse split?" A 10 for 1 is not a reverse split....it's a forward split. Thus I could see the price moving up before it and down after it.
My last question was regarding tomorrow's trading only.
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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It's a reverse. In this case you get 1 share for every 10 you own. Take today's closing price of .4199, if you owned 1,000 shares you're value would be $419.90. After the RS you would own 100 shares valued at $4.199 ea which still equals $419.90. The problem is what happens once it's split in many cases the stock goes down and another pitfall is that the company could issue more stocks and dilute it's value.
I'm not sure about tommorrow. Many people don't like RS and could sell or many people might not due the research and buy on news and the fact it went up so much today. I'm going to monitor the open very closely. Hoping for surge but prepared for dump.
Just a question that hopefully someone can enlighten me on. Since it's established that Cuban's company is paying .68 ps won't that be the price once the deal closes?
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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Good question. I just posted a question on the other ITEK board concerning what the deal will mean for the price in the near future. Keep an eye on that board as well.
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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Looks like this is trying to bounce back up. We seem to have hit a support at .28-.29 for the time being and its gone as high recently as .34......currently at .30 ask of .32
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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Question. Could somebody please tell me what all of this means? Does this make the price .68 once the deal is done with, and will the reverse split take place sometime after? This is almost sounding like another GTE, only at a more expensive price.
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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