Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I don't like Bobby V. at all - I think he's totally wrong for the team. I can't believe they hired him.
Things are good - work isn't too busy for me right now so I'm happy, but my company's quarterly closing comes again in a couple of weeks and then it gets busy again for more than a month. That's the way the accounting profession is - ebbs and flows.
Ski,
As we approach June 1, I have been informed that we are in a quiet period, and I, therefore, will not be posting anything at all for awhile from this point forward.
Friday's meeting in New Jersey, to which I was invited but unfortunately couldn't attend because of my currently heavy work schedule, went very well, and a draft of the agreement which lays out the terms of the funding and the acquisition plan for the shell is expected midweek. I have now received the 2011 data for GSI, and am headed in to work shortly to begin to put together financial statements as part of the due diligence process.
The GSI shareholders ARE a part of the stakeholders, and to the best of my ability, I will not let that be forgotten.
The process continues to move along, with a meeting scheduled for Friday in New York with GSI, the processing firm, the funders, and the provider of the shell to be present. I am confident that the deal will take place, with the major remaining open question being how the ownership pie will be split among the various stakeholders.
Meetings are scheduled for midweek at which the prospective merger partner will present for GSI's review the contract which they are now drawing up based upon the terms of the letter of intent.
Thanks to all for the birthday wishes - it's been a very nice day with friends and family. I'll keep posting updates on the progress of the deal - as I said, I am now very confident it will get done, barring any unforeseen events, which as I have seen in my 57 years, seem to happen just as often as not.
No problem, Ski. I'm happy to be able to give you a more comprehensive update on this, my 57th birthday. It's like a reverse birthday gift from me to all of you.
Late this week, I received a copy of the letter of intent, signed by the business partner who will provide the shell and arrange for its public trading as well as the financing for the business. Without divulging the terms, I can tell you that they are serious about this and have spent and are continuing to spend a lot of time working toward the structuring and completion of the deal.
Obviously, they want a significant percentage of the company, as they wouldn't try to do the deal if it didn't mean they could make a lot of money. At this stage our lawyer, who is very experienced at this sort of deal, will now review the document with Gil, and negotations toward a final contract will begin.
I can tell you that Gil and I have discussed the current GSI shareholders and ensuring that they are treated fairly in the deal, and he is very committed to making sure that that will happen, as his intentions are good, and he wants to make sure that his shareholders participate in the company's future success, as he knows that it has been a long, frustrating road for all of us as investors in his company.
The time frame for public trading is from four to six months from the signing of the final contract, which I estimate will be at least a month from now, as in addition to the negotiations which will now take place, further due diligence has to be done, which includes us providing the 2011 GSI financial statements to the partner, and I have not yet received the raw data from which to construct them.
I am now convinced that this will get done, as I don't see any deal-breaking obstacles on either side, and both parties want to complete the deal. In my opinion, it's now just a matter of time and hard work.
D,
I wish we were that far. Over the past few weeks, Gil has been meeting with the principals and their lawyers, and that has resulted in them drafting up an agreement for us to acquire the shell, which we should receive by Wednesday or Thursday. Our lawyer, who has extensive experience in these types of deals and has been retained specifically for the purpose of helping us go through this deal, will then examine it and discuss it with Gil to arrive at what changes we want to make and what terms we want to negotiate further.
Meetings were held on Wednesday, Thursday, and Friday with the merger partner's principals and lawyers, and a contract for the elements involved in the first stage of the going public process is expected by Wednesday or Thursday. My estimate of the likelihood of this going through is up to 90% at this point. All parties seem very committed to making this happen.
That's your opinion, and I'd probably feel the same way you do if I were in your position. We'll see how it turns out.
I'm excited - I'll be more excited when I see the agreement and find out what piece of the company we have to give up. It's got to be substantial, as the people involved have the ammunition to be able to put the company in a position to develop strongly.
Actually, Gil only has to travel about 30 miles - it's the other parties who have to make the 200-mile trip.
Meetings were held on four days during the past week, and more are scheduled starting Tuesday, with the result hopefully to be a complete letter of intent by the end of next week. I believe the deal is increasingly likely to be completed, as the major external parties involved have to travel about 200 miles for each meeting to the meeting site, and I don't believe they would put this kind of time and effort in unless they were very serious about bringing this deal to fruition. The caliber and credentials of the external people involved are very impressive, and they have the ability to do this deal and facilitate the company's success.
Yes, he is - I think he's done a very good job of moving the transaction along and meeting with the various parties involved.
He's doing very well - stil has the same energy and upbeat, irrepressible outlook on life as when I met him over four years ago.
The meetings last week went very well. There is another meeting scheduled for tomorrow, at which Gil will meet with more of the key players in the deal and discuss with them the letter of intent and the revisions that our legal counsel has suggested.
I'm glad we're finally in the situation where I can provide them.
I'm very encouraged by the results of the first two days of meetings, and am growing more confident that this deal will be consummated. We should have more definitive information after the meetings have finished on Friday.
We have a lawyer with us in the negotiations who is very experienced with this type of deal, and Gil is very aware of the usual pink sheet games that can go on after such deals are made.
A series of meetings is taking place this week, the results of which should give us some solid information about the terms of the deal and the projected timeline of its occurrence.
Ski,
I agree that could be a possibility, but that will take a number to years to develop, and will also be dependent on the share of the company that we will retain. The business is very small now, and will take many cycles of funding, purchase and collection of receivables, and reinvestment of the proceeds into more receivables to build it into a large business with enough earnings to support the recovery of our initial investment.
This week's meetings went very well, with further meetings scheduled for next week which involve all the major players who will be instrumental in getting the transaction done.
No amount of money could possibly eliminate the pain from those debacles (although maybe it could lessen it a little).
I'll be mourning that debacle for the rest of my life, although I found it easier to take than the similar ridiculous loss in 2008.
I hope it benefits us ALL greatly for our dedication - God knows we deserve it.
Yes - I've seen confirmation from the external party involved in getting a shell and getting it trading that indicates the process is moving forward, and a meeting is scheduled with that party mid-week which should give us more hard information about when and under what terms the shell is to be acquired and how and under what time frame it will move toward trading.
Actually it was almost eight years for me between my divorce and finding my girlfriend, so I've been there!
4 1/2, but who's counting?
They'll certainly be diluted. As I haven't seen the agreement yet, which is expected at the end of the week, but I'm not counting on it, I can't even venture a guess at an exchange ratio of new shell shares for old GSI shares, as I don't know the shell's structure, what percentage they're getting, and what share count is outstanding.
OT: Go Pats! I think they have a decent shot at the AFC crown as well.
The latest update is that the two sets of lawyers involved are supposed to have an agreement developed by both ready for review the latter part of this week. Gil and GSI's legal counsel will then have to review it to see if the terms are acceptable and/or need further negotiating. My sense is that progres is being made and that the deal will get done. Hopefully shortly into the New Year trading of the merged shell will start, although I find it hard to see how it could be before the end of January.
Double,
As far as I know, there is no difference. The thing that made the model work was that they finally got some funding two years ago to actually be able to buy receivables, whereas they had never had any funding before. I may be missing something, but from what I understand, they get financing, buy medical receivables from parties who have a strong need for immediate cash flow at a relatively low percentage of their face value, hire a processor to go through the somewhat extended and protracted process of collecting much closer to the receivables' face value, and pocket the differential. Maybe that's too simplistic, but that's my understanding.
Double,
As far as I know, there is no difference. The thing that made the model work was that they finally got some funding two years ago to actually be able to buy receivables, whereas they had never had any funding before. I may be missing something, but from what I understand, they get financing, buy medical receivables from parties who have a strong need for immediate cash flow at a relatively low percentage of their face value, hire a processor to go through the somewhat extended and protracted process of collecting much closer to the receivables' face value, and pocket the differential. Maybe that's too simplistic, but that's my understanding.
I would say we should be thankful that this is moving forward. I've heard that we're expecting a draft of the merger agreement from the legal firm shortly after Thanksgiving, and that the target is to get everything necessary in place so that we can be trading in the shell shortly after 2012 begins. Will that time frame occur? Probably not, since everything involved with this deal has dragged on beyond what has been expected, but I believe there is currently solid progress being made on at least two of the necessary fronts, and I have confidence that it will get done, as everyone involved with the deal correctly realizes that the business model works and there is money to be made here.
I'm hopeful that this board will be a much happier place by then.
If you visit again in three months, I think the odds are good that the tone here will be decidedly different.
No problem. I believe your patience will be rewarded.
Skibum - :) if you're willing to wait for the company's development - your time frame sounds like a good waiting period.
Glad you're kidding - I'm hearing of significant progress being made in the negotiations and development of agreements. That doesn't mean it will be done tomorrow, but there is progress being made.