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I know this one is higher priced, however, I hope the administrators will leave it up here for informational purposes. This one looks to have some real potential.
News just came out about retiring the debt, in exchange for restricted shares (see below) and warrants to purchase the stock at $2.00 per share. Obviously, the insiders think this stock will be worth MUCH MUCH more in the future.
According to previous PR's, they are making big money and are projecting substantial growth this year and next. The last few higher pps (.75-2.00) companies I have been watching, they usually follow up a nice PR like this one with a big one. Watch for news soon.
the pps is now oversold and I would expect a bounce soon.
Seamless Technology Completes Recapitalization Through Debt Conversion Tuesday April 4, 9:00 am ET
Conversion of $2.1 Million of Debt Into Equity Improves Balance Sheet and Reflects Confidence of Major Shareholders in Company's Future
MIAMI, FL--(MARKET WIRE)--Apr 4, 2006 -- Seamless Technology Inc. (Other OTC:SLSX.PK - News) (www.seamlesstech.com) -- a leading technology provider of e-business solutions -- announced today that it had completed the conversion of approximately $2.1 Million of its outstanding debt held by Borys Rafalowicz and Nick Nishiwacki, the Company's largest shareholders, into equity. The debt was converted into 2,260,000 shares of restricted common stock, warrants for 780,000 shares of common stock exercisable at $2.00 per share for two years, and 400 shares of Series A Convertible Preferred Stock (the "Preferred Shares") covering $400,000 of the outstanding debt. The Preferred Shares are convertible into 400,000 shares of the Company's common stock. The conversion will reduce the company's interest expense by $189,000 per year. In addition, the conversion will increase the stockholder's equity by $2.1 million. The Preferred Shares accrue a dividend of 9% per annum, payable on a quarterly basis in cash or common stock. The debt conversion is effective December 30, 2005. ADVERTISEMENT
"The conversion of the $2.1 million of debt into equity significantly strengthens our balance sheet and as of December 31, 2005 the Company is debt free," stated David C. Langle, CFO of Seamless Technology. "The stronger balance sheet not only assists the Company in attracting new prospective customers and attract further institutional investment, but it also eliminates uncertainty from the investment community due to the large amount of debt previously on the Company's balance sheet which was due in 2010. In addition, the conversion of the debt by Seamless Technology into Common and Preferred Shares, confirms the major shareholders confidence in the future prospects of the Company." The Company has approximately 23 million shares of common stock outstanding after the completion of the debt conversion.
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A couple highlights from the Feb 28th PR, with my empahsis in bold:
We expect that we will sign agreements with a minimum of 20 clients in 2006 for this revenue sharing model that we project should result in realizing gross revenues of approximately $5 million in 2006 and $10 million in 2007. These enhanced revenues have not been included in our guidance of revenues and profits that we have released, and we anticipate issuing new guidance within the next 30 days."
Seamless has consolidated gross assets of over $4,400,000 and net shareholders equity of $3,100,000. The Company's consolidated revenues have increased from $388,000 in 2004, and a loss of ($451,000) to 2005 gross revenues of $1,300,000 and an EBITDA of $350,000. The Company, without considering acquisitions and other substantial projects under negotiation, is projected to increase gross revenues to $4,065,000 in 2006 and $5,873,000 in 2007, with projected EBITDA of approximately $1,366,000 in 2006 and $2,100,000 in 2007.
-------------------- Know why it is so windy in Oklahoma? 'cause Texas sucks and Kansas blows!
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