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Any PR is good at this point. Tough to get investors at the moment because it seems that everyone is into the energy and bird flu stocks.
Posts: 1289 | Registered: Dec 2005
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Well that seals the deal with me that sucked big time...
Modern Technology Corp Announces Recapitalization Strategy to Prepare for Further Acquisitions and 2006 Profitability
By Market Wire Last Update: 5/12/2006 1:09:19 PM Data provided by
OXFORD, MS, May 12, 2006 (MARKET WIRE via COMTEX) -- Modern Technology Corp (MOTG) a diversified technology development and acquisition company announced today it will recapitalize the company in preparation for its planned acquisitions throughout 2006. As part of this preparation strategy, the company will reverse split its stock 20-for-1 and reorganize all business units toward immediate profitability.
The reverse split does not affect the ownership position of any stockholder. All stockholders will continue to own the same percentage of the company as they do now.
The new ticker symbol will be MODC effective Monday, May 15th, 2006.
The company's planned acquisitions for 2006 will be structured to build equity and avoid new debt. These transactions will therefore require warrants or preferred stock convertible into Common Stock of the company. In order to affect these planned acquisitions with equity instead of additional debt, we require the warrants or the preferred stock to be 'in the money' to both mitigate shareholder dilution as well as simplify execution of the equity instruments for the new portfolio company.
Anthony Welch, Chairman, said: "We have committed to profits and growth. We are making the changes to create a profitable growing company. We have planned acquisitions for 2006 based on equity, not debt, and we take this step today in preparation. We have also initiated our efforts to realign business units toward immediate profitability. Our focus is growth based on earnings and building equity through existing operations and new acquisitions. Shareholders should expect continuing announcements of our progress."
About Modern Technology Corp
Modern Technology Corp, a diversified technology development and acquisition company, builds revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MOTG improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries. MOTG also commercializes new technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to build shareholder value through a model of continuous growth. Web Address: http://www.moderntechnologycorp.com
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE: Modern Technology Corp
-------------------- Its all good. Posts: 85 | From: VA | Registered: Jan 2006
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get out now. same thing happened to me with mfsn and by the time the split was done i was out 2k with never a sign of life left to this day with the new symbol, etc.
-------------------- Cashing checks in two forms: Money and Reality
GLTA, The Phat Man Posts: 1236 | Registered: Apr 2006
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I am assuming the Authorized shares will remain the same? Which would mean severe dilution. Sorry folks. It hurts.
Posts: 1289 | Registered: Dec 2005
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Binsleep, I knew he needed to give us some guidance after the hrve deal went south. Thats the major acquisition he's been pumping for a while. He probably still has something in the works, but 40mil was a significant portion of all previous projections. I know they'll eventualy be profitable, but at this time its hard to see the positive EPS.
Posts: 135 | From: DC | Registered: Dec 2005
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I took what little money I had left in this badboy and put it into AURC and NDOL, both are at bargain prices, hope all your future trades are better than MOTG. I only had a small 5K investment in MOTG, I am truely sorry for all those who are going to lose a lot more...GB
-------------------- Success is having the time and money to enjoy all of life's wonders... Posts: 2083 | Registered: Nov 2005
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quote:Originally posted by CMoney: WOW! I might get fired. I got my boss into this in Oct/Nov at .067. And he doesnt do any due, he's just sitting there holding.
As for me, I got out a few weeks ago to play in some oil, after the TO was rescinded.
Is there a future for my 6.7 cent holding friend?
Fired and who knows what else. GLTU
Posts: 1289 | Registered: Dec 2005
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I am out folks. Sold at .0117. We must move on. Sorry Katrina, Binsleep, and all who were long time supporters. May the Lord bless you all with better future investments.
posted
Modern Technology Corp Announces Planned Spin-Off of H-NET Subsidiary Last Update: 2:56 PM ET May 12, 2006
OXFORD, MS, May 12, 2006 (MARKET WIRE via COMTEX) -- Modern Technology Corp (MOTG ) a diversified technology development and acquisition company announced today it plans to spin-off its H-NET subsidiary as soon as practicable. All stockholders of record on the declaration date of the spin-off will receive a stock dividend in H-NET pro rata with their current ownership in Modern Technology Corp. The decision to spin off H-NET is based upon the following factors: 1. The desire to incur no further debt into the parent company to subsidize non-profit generating business units. 2. Operational and business development funding is believed to be easier to obtain if H-NET is a separate entity. 3. Modern Technology Corp is pursuing a focused plan on achieving profitability and building revenues through further acquisitions using equity-based transactions and wishes to eliminate demands on operational cash-flow. 4. The H-NET technology and market potential are believed to be significant and the potential equity appreciation from this growth we feel better serves Modern stockholders if H-NET is a separate listed public company with appropriate funding. After institutional funding has been obtained and the related agreements executed, the spin off and stock dividend date will be determined and announced. All stockholders of record on that date will receive the stock dividend. The transaction is anticipated to be a registered offering and a new listed public stock on the OTCBB. If we do not secure institutional funding for this transaction, we will continue internal efforts to expand the H-NET subsidiary and spin the subsidiary off at a later time. Anthony Welch, Chairman, said: "As previously stated, we are focused on generating profits in all business units. We are making some bold, and sometimes difficult decisions. The H-NET technology is solid and promising. We feel its funding and operational requirements are better met if it were a separate company. Furthermore, the spin off, if successful, will eliminate any cash demands and provide an equity building transaction for all stockholders." About Modern Technology Corp Modern Technology Corp, a diversified technology development and acquisition company, builds revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MOTG improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries. MOTG also commercializes new technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to build shareholder value through a model of continuous growth. Web Address: http://www.moderntechnologycorp.com Safe-Harbor Statement This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission. Company Contact: Megan Peterson 1.662.236.5928 SOURCE: Modern Technology Corp Copyright 2006 Market Wire, All rights reserved.
Posts: 135 | From: DC | Registered: Dec 2005
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He should of at least released the spin off news first. This is unreal. AW no longer has any respect from me.
Posts: 1289 | Registered: Dec 2005
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wow I am totally confused. what does this mean?
-------------------- If it walks, talks and look a like a duck, it is probably nothing like a duck at all. Posts: 41 | From: Houston | Registered: Nov 2005
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quote:Originally posted by jimmer: wow I am totally confused. what does this mean?
If you had 100,000 shares at the close today and it closed at .01, on Monday you'll have 5,000 shares worth .20 each. That price won't hold very long. Will probably drop to .15 in a week or so. JMHO.
Posts: 1289 | Registered: Dec 2005
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thanks Raged. actually I was asking more regarding the spin-off quote. Unfortunaltey i am aware of the potential for negative outcomes from RS.
"stockholders of record on the declaration date of the spin-off will receive a stock dividend in H-NET pro rata with their current ownership in Modern Technology Corp." I guess I am unclear on two aspects:
1. Is today the declaration of the intention to spin-off? 2. Is the dividend AW is referring to a cash payment or a stock dividend?
And lets briefly touch on the demerits of a RS. Historically, in 75% of cases, a stock that undergoes a RS loses vlaue in the next 12 months. Of the 25% that INCREASE in net value (it does happen) it tends to be companies that undergo a RS when positive news is nearby and when there is a good cashflow and the fundamentals are good which they really are for MOTG.
RS spells short term gloom for sure but from what I have seen to date this guy is on a mission to expand and I if he dilutes and acquires shrewdly I think in a few weeks selling today after the plunge may look like a poor choice. Just my humble thoughts, I am not trying to pump, these is my actual opinion.
GLTA.
-------------------- If it walks, talks and look a like a duck, it is probably nothing like a duck at all. Posts: 41 | From: Houston | Registered: Nov 2005
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We should of seen this coming. We are on page "13", not the luckiest number. Have a good weekend all. Take care.
Posts: 1289 | Registered: Dec 2005
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Sadly, I'm holding. I don't have a large position in MOTG (and it's about to get smaller, hehe). Jimmer may be right. These are VERY aggressive moves made by Anthony. He is doing this to put the company in a better position to become cash flow positive. I think he realizes the mistake he made with HRVE and is trying to make up for it. Whether or not it works remains to be seen.
For the amount I'm in (or would lose if things go completely sour), I'm willing to take the risk and see where we end up. I can only say this in hindsight, however, since if I were here today, I would have dumped these SOB's in an instant. GL to everyone, whatever your choice may be.
Posts: 807 | From: Upstate NY | Registered: Dec 2005
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After the RS this baby will be at .32, I just don't see it holding that price for very long. I can see it at half of that in no time at all. Imagine if they start diluting again, which they will to raise funds for acquisitions. I hope i am wrong. GLTU
Posts: 1289 | Registered: Dec 2005
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Raged, I think your concern is very valid. I think I am going to wait on Monday to see if there is a PR and any upward movement and get out for a week or two if not. Very dissapointing week.
-------------------- If it walks, talks and look a like a duck, it is probably nothing like a duck at all. Posts: 41 | From: Houston | Registered: Nov 2005
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I believe the Authorized shares is currently 150M, the OS shares say were around 100M before the reverse split, after the RS the OS shares will be 5M. That will now give the company 145M shares to put on the market. This will dilute your stake in the company. I mean before if you had 1M shares and the OS shares were 100M you'd own 1 percent of the company, now you'll own 1/20th of 1 percent. I just can't see potential investors willing to pay .32 a share for this company. We had trouble getting people to pay 3 cents, why would they pay more then that now, I wouldn't, would you? Whoever stays in is probably going to stay until the end. Who knows maybe it will work out, only time will tell. GL to you and all that have stayed.
Posts: 1289 | Registered: Dec 2005
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Im very surprised what Welch has pulled here. Does a Wall Street Network interview to promote his company and does a reverse split 30 days later in MOTG. I sold for a modest gain less than 10 days ago. I wish everyone that was caught up in this the best but, this is the risk you take in penny stocks and there is still an outside chance Welch does have a plan for this company that will succeed and hopefully with minimal dilution so current holders still benifit. Has anyone emailed Welch since Friday or is he not anwsering emails anymore? Im sure there are many that would like give Welch an ass kickin. Ironically EGVI is up 100% in the past couple of weeks.
Posts: 216 | Registered: Mar 2006
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