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Optionable Inc. Message Board

  • jmvm12 jmvm12 Feb 18, 2007 1:54 PM Flag

    Questions

    I read the press release about the "binding agreement" with NYMEX to to purchase 19% of the company, and an option to purchase additional 19% in future. It sounds good, but I do not undersatand it because:

    a- NMX is buyig it from the finding shareholders without dilution(?) to the finding shareholders (WTF it means?). In the company profile OPBL is authorized to issue 5B (FIVE BILLION) shares. Right now the float is approx. 50M. Maybe they are selling some of these "treasury" shares to NMX?
    This would mean (the total amount 38% shares) dilution to the common shareholders of over 70%

    b- NMX has 60 days (from Jan. 22) to do its due dilligence, so it is not a done deal

    c- Who a hell is OPEX International Inc.? I did not find it on internet, and there is no ticker for it, may be a private company?


    All and every serious responses welcome.

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    • peter_norths_proctologist peter_norths_proctologist Feb 18, 2007 4:35 PM Flag

      jmvm12, this SEC document provides more detail on the NYMEX buy-in

      http://www.sec.gov/Archives/edgar/data/1303433/000117266507000021/form8k.txt

    • First of all the 19% they bought were from current management/ownership. They are allowed via warrants to buy up to another 21% of the company for a total of 40% Opex is the electronic trading platform the traders of the Nymex are using which is owned by OPBL. Go to optionable.com and find all the news releases. Thier electronic trades are skyrocketing so hopefully they will buy them out in the next 18 months.

    • Sorry, my mistake. The Equity information is from Reuters not from company profile and it says:

      common stock par value $0.0001 100M authorized and 51M issued. in treasury 4.1M insiders control 51%.

      But here it comes:

      Preferred stock $0.0001 par., authorized 5B. None issued.

      So I would guess that NMX will get the preferred stock. Who knows how much will they issue, but never-the-less they are taking 38% of the company without dilution to the original founders(if they excercise the additional amount and purchase entire 38% of the company)

      So the existing float representing curently 49% ownership of OPBL will represent only 11% after the transaction! (If NMX takes only 19% it will be 30%) If I understand it correctly the dilution the the common shares is something like 2:1 (19% taken by NMX) or 4:1 (38% taken by NMX). MNX will take 75% of the undelying value of the floating shares (NMX takes 38%). MNX will pay for it of course, but the gowth would have to accelerate 4x from the current stratospherinc numbers to keep the same growth applicable to the common shares.

      As I mentioned all serious answers/comments welcome.

    • jmvm you're obviously a rookie at this game, your questions indicate such. There's no dillution and Opex is O'Conner's company. NMX is in, these things don't happen overnight. OPBL can issue up to 100mil without notice. Will they? Hell no. Now that NMX is on board double hell no. Fear not, just buy and hold and you'll be rich.