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  • db_dumper db_dumper • Jan 26, 2001 12:45 PM Flag

    Catapulse and RATL merger

    I just received my "Joint Prospectus/Proxy Statement" from RATL. With the issuance of 12+million shares of RATL at approximately $45, it's going to cost RATL about 1/2 billion dollars. Is it worth it for a startup that's losing money, and by my estimates, unless they can get more VC funding (which they stopped trying to get because of the pending merger [and good luck in the current Tech climate]) they should be out of cash in less than 2 years.

    Ideas and opinions?

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    • wheizer wheizer • Jan 26, 2001 11:16 PM Flag

      I have some of the same questions. Ratl put up the initial $50mil and we recd a 40% interest. Another $25mil came in from a VC. Cat still has $45mil cash so they haven't spent all of our initial $ yet. And now RATL is going to pony up 1/2 BILLION in our equity to our insiders and the VC when we have borne all the risk? Doesn't make sense to me.

      I've been a holder in RATL since just prior to the Pure Atria merger so I've stuck thru quite a bit but not sure for how much longer.

    • toozie toozie • Jan 26, 2001 1:56 PM Flag

      IMO, you should research the companies you own so you know why you own them. Rational played the central role in starting Catapulse, and I was relieved when they announced they would buy out their original partners' ownership positions. Rational is far from cash-poor, and five years from now the Catapulse business will be a clear force within the software development industry.

      Randy