I have to say this is a nice change to see our new leader has a purpose and a plan! The Webinar scheduled for next week is a positive step towards building our path from technology development to selling real products and actually making money! I wish Mr. Rickert well. At least he is giving it a go! I'll be excited to hear some of his initial ideas.
Where did you hear that? I haven't seen any statements at all. Did I miss something? I would think they would have to surface one of the exchanges soon or declare bankrupcy. Why appoint another director if they are not going to continue operating in some way? I wrote them with questions but no response. Surprise, Surprise.
Looks like the financials posted the other day were exactly the same as APNT before the merger. Is that to say they don't post any real combined operating data until after a full quarter of operation? Anyone know how that works? I can only imagine that the combined entity with $14MM in operating revenues will appear healthier and bode well for the share valuation at least initially.
I'll just post my last message from the old board onto the new board (in case the other board goes away soon) in hopes of stirring up the conversation on what this new entity is really worth. Anyone care to evaluate? All I can assert is that the new entity PENC is worth more than APNT. I think that's a given but time will tell:
According to the information contained in the merger agreement, Nanofilm's shares would number 267 MM. APNT's shares were 157 MM. So that would put us at approx. 37% of the shares. But as I mentioned previously, there were additional shares generated to 1) Pay off the old management (Doug and Zvi) 11.6MM; 2) Pay off the existing convertible notes 32.2MM; 3) Pay Transaction fees 11.2 MM; 4) Create Class A shares for Nanofilm 29.5 MM; 5) Create shares for Zeiss 50.3 MM; 6) Add'l. bridge financing and a few other misc. things 16.6 MM = Total of 575.8 MM shares outstanding. That means that if 1 share of APNT = 1 share of PEN you now own approx. 157/576 = 27% of PEN. The question is "What is PEN worth?" We will find out in the coming weeks but to simplify it, a share of PEN needs to be about .26 for you to break even at todays APNT price of .07. And as added information, there are an additional 724 MM shares authorized for the Reichert's to go on their shopping spree and buy additional entities as they see fit. Total shares authorized = 1.3 Billion) I'm not saying we won't be better off in a year or two, but we have our work cut out for us to get the eventual share price to anything above single pennies. At a P/E of, say 30, PENC would need to have earnings of $5MM next year. Not horrible, but I think it's safe to say we awhile away from generating that kind of income. We will have to think about our other investments and leave this be for awhile. Who knows, maybe we get lucky with a breakthru technology soon. Best of luck to al
According to the information contained in the merger agreement, Nanofilm's shares would number 267 MM. APNT's shares were 157 MM. So that would put us at approx. 37% of the shares. But as I mentioned previously, there were additional shares generated to 1) Pay off the old management (Doug and Zvi) 11.6MM; 2) Pay off the existing convertible notes 32.2MM; 3) Pay Transaction fees 11.2 MM; 4) Create Class A shares for Nanofilm 29.5 MM; 5) Create shares for Zeiss 50.3 MM; 6) Add'l. bridge financing and a few other misc. things 16.6 MM = Total of 575.8 MM shares outstanding. That means that if 1 share of APNT = 1 share of PEN you now own approx. 157/576 = 27% of PEN. The question is "What is PEN worth?" We will find out in the coming weeks but to simplify it, a share of PEN needs to be about .26 for you to break even at todays APNT price of .07. And as added information, there are an additional 724 MM shares authorized for the Reichert's to go on their shopping spree and buy additional entities as they see fit. Total shares authorized = 1.3 Billion) I'm not saying we won't be better off in a year or two, but we have our work cut out for us to get the eventual share price to anything above single pennies. At a P/E of, say 30, PENC would need to have earnings of $5MM next year. Not horrible, but I think it's safe to say we awhile away from generating that kind of income. We will have to think about our other investments and leave this be for awhile. Who knows, maybe we get lucky with a breakthru technology soon. Best of luck to all.
I will assume you are saying "A big UNPLEASANT surprise" and not "a big PLEASANT surprise". The one thing I could never quite understand was the fuzzy math used to equate APNT to 38% of the total. Everyone did the math and said that means there will be 413 MM shares of PEN. But then we find that, no there will be 576MM shares of PEN. I think that is because the shares that are being created and sold to pay off the current debt. and the old APNT management is not included in the final calculation. So it will not surprise me too much to find out that my shares are only worth about 27% of the PEN shares. I guess we'll know shortly. Now why management wouldn't make all that clear before the transaction or provide for any 3rd Party independant analysis and reporting to the shareholders, will become obvious. We will have been snookered and the managements old and new will all be sitting pretty going forward.
So isn't this week when the "combination" is completed and the name changed? Anybody know the date when this will occur? Will they come out with a combined financal statement right away or only after the next quarter is completed? Anybody know?
For what it's worth -
I sent them an e-mail about 2 weeks ago and got this response. (Not a very professional "investor relations" dept. but what should we expect from the Chinese. Aren't anymore?) I wish I could believe them when they say they will resume reporting.
the company is functioning. The company will inform shareholders
about its specific steps with regards to resume reporting.
2014-08-21 14:29 GMT-04:00, Dear Sir,
Is ABAT planning to file a current quarterly report and retain compliance
with NASDAQ ? If so, when will ABAT file the report? I am a long-time
shareholder who believed in the company at one time. It has been too long
without any communication from the CEO. Can you at least tell me if the
company is still functioning? Are there people working in the
manufacturing plants? Are you continuing to operate? At least tell me if
you have any plans to renew your compliance with NASDAQ and when will you
provide such statement?
stevecindyb: You're probably correct in your assessment. It would be nice, however, if the new management would at least share a few of their new ideas with us. (i.e. give us some good reasons to vote them in). Today's news release is typical CEO-speak "I look forward to sharing details of that growth strategy in the coming months." Why not share a few plans with us now to give us good reason to vote for handing him total control of the company? I'm tired of the generalities of "great things to come" from these small cap CEO's many of whom are there just to milk a very nice salary while "keeping hope alive" among the shareholders by these generic statements of all the great possibilities to come. This is the last time, we as shareholders will ever be considered in the running of this new company. After the merger we will not ever matter to this management team again. It'll be their way or the highway. If they want to sell off the iP and retire the following week they can just do it. Shareholders be damned. Hopefully we'll get an update letter every so often but they don't even have to do that.
I think the merger ends up being just a creative way for current management to bow out gracefully, while giving themselves a HUGE payoff. Basically they just gave up and handed the company off to the Rickerts with a hope and prayer for us shareholders going forward. The deal for Nanofilm is nothing short of stealing the IP. Our post-merger share value will be highly diluted and we will have no future say-so in the direction of the company. Effectively, we will own shares in a private company. Great if they can turn it around and actually commercialize the IP, but for us to benefit, we would need to grow to a billion dollar company. If the Rickerts could just throw out one new positive product/plan that they have to do this, it would go a long way towards making me feel good about the merger. What are their specific plans? Throw us a bone! Right now, I see very little synergy between our two companies. They'll probably keep a few patents they like, and then sell off the rest for whatever they can get.
As of today, I think they are getting so anxious about not getting the votes, that they are starting to buy the 19MM shares they lack towards a quorum, because the deal is SO good for them. I am not planning to vote for the merger unless the management gives us a solid reason why it is so great for the share value. Rickerts: Give us a reason to hand over the company to you. What will you do that will benefit ME. C'mon, throw us a bone!!
What evidence can anyone produce that says this company is delivering any products out the door to anyone? Very Frustrating. I'd just like to know if people are working at their manufacturing facilities.
So basically, Mike paid just under 2 cents a share to take out the warrants from becoming future shares that would dilute the share price. Apparently, Shaar Fund believes the stock is going to zero and took a deal to salvage some of their investment. Mike, on the other hand, believes the stock will hit the 30 cents by next year and wants to remove the threat of the dilutive shares, which is to our benefit. I'm not sure what other motivation he would have unless he had an unlawful deal with Shaar. As I recall, though, they are not on good terms. So I hope your assumption is correct and we double from here. This next report is key to the future of the company. If they can continue to grow revenue quarter to quarter we should go way up quickly. Good Luck to you
I like to hear hopeful scenarios like you have presented. I too have a long-term (from SIDT days) investment and have lived thru the hard times and, yes, we all do deserve to be paid eventually. I also believe we need to have new management and a new approach to trying to monetize our unique IP. The most important thing to observe with this new deal is the tremendous dilution that is taking place (along with our voting rights as we will have none). The unfortunate probability is that the Rickerts will use the "hundreds of millions" of new shares to raise cash and perhaps buy another entity which can be good, however, the success of any newly developed product would need to be MASSIVE to help you and I get a share value as high as 10.5 cents/share. We will be at 1.3 Billion shares outstanding (read it in the agreement) at the end of that process which means we would need to have a market capitalization of.......$136,842,105. Compare that with the $6 million we have today. In other words the company will need to be worth 23 times what it is worth today. I am as hopeful as you that this would happen, however, I would sooner expect that if they have a breakout product that turns us around, they would do a reverse split, say 50 to 1 which will raise the price over the $5 limit for allowing institutional trades on the big exchange (NASDAQ). At this point the dilution for people like you and I will be huge. I would say in the realm of 2% of what you own today. I believe this could be the sad reality. I hope I am wrong. But, I agree with you that this may be the best alternative for us at this time. If we don't vote for the merger, then we will need to create new shares and dilute the stock anyway (not near as much) and then hope the same management that got us here would somehow do something different or better. (not likely) So I am with you that we probably should vote FOR the merger as our best option, but I don't think we will ever see much of gain.
Which way should we be voting? If we vote FOR the merger, it will be the last vote that we shareholders will ever participate in because Mr. & Mrs. Rickert will have control all future voting rights. (read the fine print). As a part of the merger plan, they will also then be issuing an additional 177 MM shares to pay off the current directors, Zeiss, and some debt, along with hundreds of millions of new shares to manage future debt. and aquisitions, etc. The dillution for us will be horrific. On the other hand, if we vote AGAINST the merger, we will need to issue more shares anyway to keep operating so that will entail some dilution as well. So it looks like our choices are this:
1. We continue to own 100% of APNT as is, with the prospect of finding another merger deal or marketing one of the technologies ourselves to pay the bills (hasn't worked to date). We accept "some" dilution to operate until the revs could be generated.
2. We buy into the merger and own 38% (before the additional dilution happens, but much less afterwards).
So do you take your chance on the current operating model and hope for the best? Or do you own 38% of a break even operation which has a little more hope of making something happen and generating future value? I think in the end I will probably vote FOR as I have been riding this horse for a long time without results. Time to start doing something different. (But I won't get rich on it even if they do create some profits.)
w.reed17 - Thanks for your observations. I too believe in the future value possibilities you have outlined. The combined companies appear to be at least break even, and I would think there may be some synergies that will bring about new and marketable products. I also agree that Doug Baker and co. did a nice job of maintaining the ship and keeping it afloat but really did not make anything happen in the marketing arena. I am happy to see some new management in place that has more experience in making products and marketing them. Their coatings business, while not that exciting, should pay our basic bills for a time until we can find another breakout technology to market. At least we have people in place that understand how that works! I believe a .15 share price might be possible but only after a couple of years of transition into some additional markets. I am very curious to see if the new management has any big announcements regarding their direction and ideas for manufacturing new products immediately after the merger completes. We might not expect to hear any of that until then. A big announcement could take us into the .05 to .07 per share level but I don't expect .15/share until they have demonstrated revenues from substantial new products. Remember the outstanding shares are about to go thru the roof which will hurt initially.
Silence is not normally a good thing from management, but if they are even close to his projected 1.0 to 1.7 million revs in this last quarter, I can see us easily jumping to .50. The next few weeks will tell. I am excited about the near future for the company which has shown strong quarter to quarter growth lately. The silence can be a good thing in the case of an impending big deal which often requires secrecy. The fact that Mikey D. isn't blathering on in some speculative press release is at least a change! GLTA.