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Does anyone know why the dramatic drop on big volume this morning?
I haven't received mine yet. Here's a post from the RB board about mergers:
REVERSE MERGER - What it is and its significance. AWYB is a great example of a reverse split.
A reverse takeover (RTO), also known as a back door listing, or a reverse merger, is a financial transaction that results in a privately-held company becoming a publicly-held company without going the traditional route of filing a prospectus and undertaking an initial public offering (IPO). Rather, it is accomplished by the shareholders of the private company selling all of their shares in the private company to the public company in exchange for shares of the public company.
While the transaction is technically a takeover of the private company by the public company, it is called a reverse takeover because the public company involved is typically a "shell" (also known as a "blank check company", "capital pool company" or "cash shell company") and it typically issues such a large number of shares to acquire the private company that the former shareholders of the private company end up controlling the public company.
PROCESS
There are two ways for a privately-held company to go public: Through an initial public offering of stock (IPO), or via reverse takeover.
In a reverse takeover, shareholders of the private company purchase control of the public shell company and then merge it with the private company. The publicly traded corporation is called a "shell" since all that exists of the original company is its organizational structure. The private company shareholders receive a substantial majority of the shares of the public company and control of its board of directors. The transaction can be accomplished within weeks. If the shell is an SEC-registered company, the private company does not go through an expensive and time-consuming review with state and federal regulators because this process was completed beforehand with the public company.
The transaction involves the private and shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. At the closing, the shell company issues a substantial majority of its shares and board control to the shareholders of the private company. The private company's shareholders pay for the shell company by contributing their shares in the private company to the shell company that they now control. This share exchange and change of control completes the reverse takeover, transforming the formerly privately-held company into a publicly-held company.
BENEFITS
The advantages of public trading status include the possibility of commanding a higher price for a later offering of the company's securities. Going public through a reverse takeover allows a privately-held company to become publicly-held at a lesser cost, and with less stock dilution than through an initial public offering (IPO). While the process of going public and raising capital is combined in an IPO, in a reverse takeover, these two functions are separate. A company can go public without raising additional capital. Separating these two functions greatly simplifies the process.
In addition, a reverse takeover is less susceptible to market conditions. Conventional IPOs are risky for companies to undertake because the deal relies on market conditions, over which senior management has little control. If the market is off, the underwriter may pull the offering. The market also does not need to plunge wholesale. If a company in registration participates in an industry that's making unfavorable headlines, investors may shy away from the deal. In a reverse takeover, since the deal rests solely between those controlling the public and private companies, market conditions have little bearing on the situation.
The process for a conventional IPO can last for a year or more. When a company transitions from an entrepreneurial venture to a public company fit for outside ownership, how time is spent by strategic managers can be beneficial or detrimental. Time spent in meetings and drafting sessions related to an IPO can have a disastrous effect on the growth upon which the offering is predicated, and may even nullify it. In addition, during the many months it takes to put an IPO together, market conditions can deteriorate, making the completion of an IPO unfavorable. By contrast, a reverse takeover can be completed in as little as thirty days.
For a conventional IPO, it can cost as much as $200,000 just to release a preliminary prospectus. A reverse merger, however, can be done for $95,000 to $150,000.
Additionally, many shell companies carry forward what is known as a tax-loss. This means that a loss incurred in previous years can be applied to income in future years. This shelters future income from income taxes. Since most active public companies become dormant public companies after a string of losses, or at least one large one, it is more likely that a shell company will offer this tax shelter.
It is highly unusual to preserve any benefit from the tax loss carry forward in a shell company. The tsx regs. normally reduce the loss carry forward by the percentage of the change in control. In a well structured reverse merger the private company should end up with 95% or more of the stock after the mergr, thus reducing the tax loss carry forward by this amount for greater.
FUTURE FINANCING
The greater number of financing options available to publicly-held companies is a primary reason to undergo a reverse takeover. These financing options include:
The issuance of additional stock in a secondary offering
An exercise of warrants, where stockholders have the right to purchase additional shares in a company at predetermined prices. When many shareholders with warrants exercise their option to purchase additional shares, the company receives an infusion of capital.
Other investors are more likely to invest in a company via a private offering of stock when a mechanism to sell their stock is in place should the company be successful.
In addition, the now-publicly-held company obtains the benefits of public trading of its securities:
Increased liquidity of company stock
Higher company valuation due to a higher share price
Greater access to capital markets
Ability to acquire other companies through stock transactions
Ability to use stock incentive plans to attract and retain employees
Source: Wikipedia
(Voluntary Disclosure: ST Rating- Strong Buy; LT Rating- Strong Buy)
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My crystal ball sees Blast as profitable and cash flow positive during 2007, DOE contracts with mobile rig, other drilling contracts with conventional rigs, and an AMEX listing in the next 6 months. I hope the crystal ball is right and I don't have to trade it in on a new one.
Loaded up and holding, here.
I would anticipate them looking for the right merger opportunity with a private company looking for the right vehicle(shell company) in which to go public. It was said that there wouldn't be a reverse split any more than 1 to 6. An R/S may be necessary when merging the FCCN outstanding shares with that of a private company. It might get interesting and the shares we hold might acquire some real value. At least, that's why I'm holding on at this point. This could move up quickly with the right merger, especially with new management at the helm. BTW, I would suspect that the management teams of the two merging companies would very possibly merge, as well. JMO.
Not much volume today, but 'UP' looks good.
I did hear they were meeting with AMEX this past week. How do you think they would qualify? Based on assets now that they made the recent acquisition?
Good post. I agree.
That's fine. I've bought 3 times already this morning.
A contract with the Dept of Energy would be nice. Developments on the nozzle,etc. There are a few things that could be coming soon. We'll just have to wait and see. Yes, patience is key.
My understanding is that the GAMN shares will be mailed to us some time in the next 60 days.
I believe Blast is in discussions with the Dept. of Energy because of the new rig's capabilities listed in this passage from the 10Q. I also believe I read somewhere that this stirred interest by the Dept of Energy. Also, I suspect that while working for the Dept of Energy, they will continue to test modified nozzles. Here's the passage:
While on this location, the Blast Rig #1 has again successfully demonstrated the ability to cut a large (3 x 3 inch) window into the steel well casing using AFJ from within the well-bore - a unique attribute in the energy business. Additionally, the Company now believes that this cutting process perforated approximately three feet into the rock formation beyond the casing wall. This large bore perforation service adds to the rig's existing well service capabilities, which include specialty casing cutting and normal coiled tubing well services.
Footnote to my previous post is that if the financiers execute the warrants, Blast will receive a strong infusion of capital for the sale of those warrants. If the warrants aren't executed then dilution won't be as much. My opinion is that the warrants will be executed because the potential buyers of the warrants will see big profits there. Again, bottom line is that the company should soon be profitable and the risk should be much lower than before. It's better to have a smaller percentage of a big company with the shares worth more than to have a large piece of a company that can't get off the ground. IMO, Blast will soon be off the ground financially and we will be the winners. As I see it, this acquisition is a solid transaction in our favor. I don't see how it can be viewed any other way. We knew we couldn't do the deal with no dilution.
Bottom line here, IMO, is that BESV has acquired a company which will allow Blast to become profitable and cash flow positive during 2007 including the payments for financing. It allows them to be a viable company with much less risk than before and affords them a much better opportunity to reach AMEX. The nozzles still need improvement, but they're in discussions for contract work even the way the rig is presently performing. This is all my interpretation of the PR. The pps drop, IMO, is nothing but some profit taking and the stock will find a bounce point and then consolidate and begin to rise steadily. It did, however, drop sooner than I expected, but I feel a lot better for long term company viability now that we've made this acquisition. I don't care if we acquire another company the same way. We'll just be a bigger company making bigger profits and yes, the O/S will be bigger as well. Profit is the botton line. Just my opinion.
BESV NEWS!
Blast Energy Services Acquires Land Rig Drilling Company
Monday August 28, 7:30 am ET
HOUSTON, Aug. 28 /PRNewswire-FirstCall/ -- Blast Energy Services (OTC Bulletin Board: BESV - News) has completed the acquisition of Eagle Domestic Drilling Operations, LLC ("Eagle") for a nominal $50 million in cash and 1.5 million shares of Blast common stock. Blast is purchasing this Texas-based drilling rig contractor from the members of a privately held company. The acquisition of Eagle was financed using $35 million from a Senior Debt Facility from Laurus Master Fund Ltd. and a $15 million private placement of common equity. Through the acquisition of Eagle, Blast will immediately gain three operating drilling rigs, which are currently generating revenue and positive cash flow and an additional two rigs under final construction that are scheduled for field deployment in October. Blast has also contracted with an affiliate of the selling group for consulting services, which includes the building of a sixth rig scheduled for delivery in late 2006.
ADVERTISEMENT
"This transaction completes the transformation of Blast into a viable operating company in the energy service sector," said John O'Keefe and David Adams, Co-CEOs of Blast Energy Services, Inc. "The new business significantly improves our balance sheet and provides a profitable platform from which to grow the company and allows greater flexibility in the development of our abrasive jetting and satellite business lines. We will now focus on the integration of the existing Eagle drilling operations into Blast and the deployment of the three additional rigs under construction on a timely basis."
In addition to the physical rig assets, Eagle has five of the six rigs signed to two-year, term drilling contracts with two major Texas based independent oil & gas companies. These customers have contracted the rigs to operate in the prolific Barnett Shale play in Texas and the emerging Fayetteville Shale play in Arkansas. In additional to the drilling rig crews being transferred to Blast, Richard D. Thornton, the VP of Operations for Eagle, will be joining the Blast senior management team in the same capacity.
Based upon the existing two-year contracts and once the sixth rig has been put into operation, Blast management is projecting that Eagle will be capable of generating annual revenues of $39 million with an annual EBITDA of approximately $19 million. With this acquisition, Blast management expects the Company to be both profitable and cash flow positive during 2007. Despite the issuance of stock and warrants in the acquisition and related financing terms, management further expects the overall result to be accretive to both earnings per share and cash flow per share.
Financing terms for the acquisition include a three-year Senior Debt facility for $40.6 million from Laurus Master Fund, Ltd, $35 million of which was used to close the acquisition. The facility carries interest rates of prime plus 2.5% and 30% warrant coverage. Blast has also entered into a private placement with members of the selling group to purchase 15 million shares of common stock at $1.00 per share. This placement includes 33% warrant coverage. The private placement was directly negotiated between the parties and the debt financing was privately arranged by a broker for cash fees and limited warrant coverage.
In related news, the Company's prototype abrasive fluid jetting (AFJ) rig has completed its latest field tests at the Many, Louisiana location. Blast is now in discussions with the Department of Energy to deploy the Blast Rig #1 to the Rocky Mountain Testing Facility in Wyoming to further test and evaluate the rig's cutting and jetting capabilities. Meanwhile, Alberta Energy Partners, our AFJ technology partner, will be making modifications to the down hole equipment and nozzle design to access reservoir formations laterally.
About Blast Energy Services, Inc.
Blast Energy Services, Inc. is a publicly traded company based in Houston. Our mission is to substantially improve the economics of existing oil and gas operations through the application of our worldwide licensed and proprietary technologies. Using specially fabricated mobile drilling rigs we intend to operate a commercially viable energy service business, including: specialty casing cutting, perforation, fracturing services and lateral drilling with the potential to penetrate through well casing and into reservoir formations to stimulate oil and gas production. This service should provide oil and gas producers with an attractive, lower cost alternative to existing well stimulation or horizontal drilling services. Additionally, we are providing satellite services to oil and gas producers. This service allows them to monitor and control well head, pipeline or drilling operations through low-cost broadband data and voice services from remote operations where conventional land based communication networks do not exist or are too costly to install. Please visit our website: http://www.blastenergyservices.com.
Safe Harbor Statement
Any statements made in this news release other than those of historical fact, about an action, event or development, are forward looking statements. Forward looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this release. Such factors may include risk factors including but not limited to: the ability to integrate and successfully operate the newly acquired company, the ability to raise necessary capital to fund growth, adequate liquidity to manage operations and debt obligations, the introduction of new services, commercial acceptance and viability of new services, fluctuations in customer demand and commitments, pricing and competition, reliance upon lenders, contractors and vendors, the ability of Blast Energy Services' customers to pay for our services, together with such other risk factors as may be included in the Company's filings on Form SB-2 and its periodic filings on Form 10-KSB, 10-QSB, and other current reports.
Source: Blast Energy Services
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Here we go!
Blast Energy Services Acquires Land Rig Drilling Company
Monday August 28, 7:30 am ET
HOUSTON, Aug. 28 /PRNewswire-FirstCall/ -- Blast Energy Services (OTC Bulletin Board: BESV - News) has completed the acquisition of Eagle Domestic Drilling Operations, LLC ("Eagle") for a nominal $50 million in cash and 1.5 million shares of Blast common stock. Blast is purchasing this Texas-based drilling rig contractor from the members of a privately held company. The acquisition of Eagle was financed using $35 million from a Senior Debt Facility from Laurus Master Fund Ltd. and a $15 million private placement of common equity. Through the acquisition of Eagle, Blast will immediately gain three operating drilling rigs, which are currently generating revenue and positive cash flow and an additional two rigs under final construction that are scheduled for field deployment in October. Blast has also contracted with an affiliate of the selling group for consulting services, which includes the building of a sixth rig scheduled for delivery in late 2006.
ADVERTISEMENT
"This transaction completes the transformation of Blast into a viable operating company in the energy service sector," said John O'Keefe and David Adams, Co-CEOs of Blast Energy Services, Inc. "The new business significantly improves our balance sheet and provides a profitable platform from which to grow the company and allows greater flexibility in the development of our abrasive jetting and satellite business lines. We will now focus on the integration of the existing Eagle drilling operations into Blast and the deployment of the three additional rigs under construction on a timely basis."
In addition to the physical rig assets, Eagle has five of the six rigs signed to two-year, term drilling contracts with two major Texas based independent oil & gas companies. These customers have contracted the rigs to operate in the prolific Barnett Shale play in Texas and the emerging Fayetteville Shale play in Arkansas. In additional to the drilling rig crews being transferred to Blast, Richard D. Thornton, the VP of Operations for Eagle, will be joining the Blast senior management team in the same capacity.
Based upon the existing two-year contracts and once the sixth rig has been put into operation, Blast management is projecting that Eagle will be capable of generating annual revenues of $39 million with an annual EBITDA of approximately $19 million. With this acquisition, Blast management expects the Company to be both profitable and cash flow positive during 2007. Despite the issuance of stock and warrants in the acquisition and related financing terms, management further expects the overall result to be accretive to both earnings per share and cash flow per share.
Financing terms for the acquisition include a three-year Senior Debt facility for $40.6 million from Laurus Master Fund, Ltd, $35 million of which was used to close the acquisition. The facility carries interest rates of prime plus 2.5% and 30% warrant coverage. Blast has also entered into a private placement with members of the selling group to purchase 15 million shares of common stock at $1.00 per share. This placement includes 33% warrant coverage. The private placement was directly negotiated between the parties and the debt financing was privately arranged by a broker for cash fees and limited warrant coverage.
In related news, the Company's prototype abrasive fluid jetting (AFJ) rig has completed its latest field tests at the Many, Louisiana location. Blast is now in discussions with the Department of Energy to deploy the Blast Rig #1 to the Rocky Mountain Testing Facility in Wyoming to further test and evaluate the rig's cutting and jetting capabilities. Meanwhile, Alberta Energy Partners, our AFJ technology partner, will be making modifications to the down hole equipment and nozzle design to access reservoir formations laterally.
About Blast Energy Services, Inc.
Blast Energy Services, Inc. is a publicly traded company based in Houston. Our mission is to substantially improve the economics of existing oil and gas operations through the application of our worldwide licensed and proprietary technologies. Using specially fabricated mobile drilling rigs we intend to operate a commercially viable energy service business, including: specialty casing cutting, perforation, fracturing services and lateral drilling with the potential to penetrate through well casing and into reservoir formations to stimulate oil and gas production. This service should provide oil and gas producers with an attractive, lower cost alternative to existing well stimulation or horizontal drilling services. Additionally, we are providing satellite services to oil and gas producers. This service allows them to monitor and control well head, pipeline or drilling operations through low-cost broadband data and voice services from remote operations where conventional land based communication networks do not exist or are too costly to install. Please visit our website: http://www.blastenergyservices.com.
Safe Harbor Statement
Any statements made in this news release other than those of historical fact, about an action, event or development, are forward looking statements. Forward looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this release. Such factors may include risk factors including but not limited to: the ability to integrate and successfully operate the newly acquired company, the ability to raise necessary capital to fund growth, adequate liquidity to manage operations and debt obligations, the introduction of new services, commercial acceptance and viability of new services, fluctuations in customer demand and commitments, pricing and competition, reliance upon lenders, contractors and vendors, the ability of Blast Energy Services' customers to pay for our services, together with such other risk factors as may be included in the Company's filings on Form SB-2 and its periodic filings on Form 10-KSB, 10-QSB, and other current reports.
Source: Blast Energy Services
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Nice day, Friday. Can't wait for Monday.
BESV finished strong today on good volume. Up .15. Close at $1.45. Watch this one Monday as news is expected.
I heard a rumor that it was to be finalized today, but probably would not be announced before Monday. Take it as rumor only.
Buyers seem to be hitting the offer this morning even with a bit of a gap between the bid and ask. If volume escalates, it could be a good sign of good news coming.
GAMN now at $1.38!!
GAMN now at 1.10!
GAMN now at $1.00. Bid is .85, Ask is 1.00. What's the ask right now of FCCN, I believe .007. That's 30% less than the present value of the dividend you would get in GAMN.
I have bought private placement share certificates in several companies. I don't know how they compare with dividends, but all I've bought could be freed up after one year through a broker for a fee or two years with no fee through the stock transfer company used by the company I bought the stock in. The company has, in some cases filed an SB-2 form and freed up certain shares even earlier. Also, I'm thinking the day you actually buy or sell the stock is the day you are deemed a holder of the stock, not 3 days later. I'll have to check further on that, though.
Were you able to talk to the IR? Also, is the signing of the deal postponed til next week or just the PR?
GAMN is now at .90, up .40 from where it was when the PR came out.
I talked to Andrew at Javelin today and he told me that we would get to keep our FCCN shares and that the GAMN shares would be a dividend to us.
Here's the link. It also shows pictures of the cable:
http://www.spectrum.ieee.org/jun06/3674
Article on CTC:
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News Analysis
More Heat, Less Sag
By Willie D. Jones
Cables may help ease the power squeeze by delivering more current along the same rights of way
You might think of it as putting more backbone into a power line. At least a couple of companies are doing it—they’ve developed high-voltage power cables that don’t sag nearly as much as the lines they would replace. No, the power utilities are not replacing the aluminum that conducts the current; they’re replacing the steel core that gives the cable its strength. The reason: as steel heats because of the current in the aluminum, it sags a lot, sometimes so much that a power line can touch a tree limb and trigger a blackout.
A handful of utility companies are testing the new high-voltage cables in the United States. And one cable—from Composite Technology Corp. (CTC), of Irvine, Calif.—will be installed beginning this summer on a new 60-kilometer-long power line in China’s Fujian province.
Utah Power, a Salt Lake City utility that is owned by PacificCorp, in Portland, Ore., strung CTC’s cable in January. The company recabled a 10.8‑km line with CTC’s low-sag, composite-core transmission cable. And six months before that, Xcel Energy Inc., of Minneapolis, turned on a 16-km line outfitted with a low-sag cable produced by 3M Co., of St. Paul, Minn [see photo, “Cable Upgrade”]. The new power lines look like the cables already in service, but because of their novel materials, they can help alleviate some chronic problems on the grid. The two new cables are made to better resist stretching and sagging at high temperatures.
PHOTO: 3M CO.
3M Co.’s composite-reinforced cable
Most of the power lines you see are 1950s-vintage steel-reinforced aluminum conductors. The aluminum is wrapped around a steel bar that maintains its stiffness at temperatures up to about 100 °C, which is roughly the temperature a 230‑kilovolt line will reach when it is transporting its average load of 400megavolt-amperes. But if the current gets too high and the temperature exceeds the cable’s thermal rating, the steel loses its tensile strength and the power line sags.
Sagging power lines touching overgrown trees have been a contributing factor in major power outages, such as the one on 14 August 2003, which started the chain of events that darkened eastern parts of the United States and Canada. A transmission line sagged and touched the top of a tree that had encroached on the line’s right-of-way, causing a short circuit. Circuit breakers immediately cut the current in that line, but the current was diverted to other cables, which then overloaded.
Sagging power lines have become a problem in recent years, because electricity demand has increased and long-distance power transfers have soared as systems have accommodated electricity trading. Because of the difficulty that utilities have in obtaining public approval for new rights-of-way, transmission capacity has not kept pace.
"This is a very conservative market. [Utilities] want to deliver power more cheaply but can’t do so at the risk of affecting reliability" —Kevin Coates, CTC spokesman
Less sag is not the only improvement in these two new cables. Both have composite cores that are thinner and lighter than the steel they replace. Hence, the cross section of a cable of the same overall thickness as today’s typical line can contain more aluminum, giving it more current-carrying capacity. That—and the fact that the new cables can operate at temperatures of around 200 °C—means that up to twice as much current can be transmitted, with less sag than before.
Though CTC’s composite core is rated for 180°C, the company says that in trials, it sagged one-tenth as much as steel would when the temperature of the conductor was raised to 210°C. That stands to reason, because the composite’s coefficient of thermal expansion—its susceptibility to stretching when heated—is 1.6 x 10‑6/°C, about one-sixth the coefficient of steel. Utah Power says that because of its higher current-carrying capacity, the CTC cable could allow the utility to meet projected demand for electricity for at least the next 15years without any new transmission corridors.
CTC’s product, Aluminum Composite Conductor Core (ACCC) cable, gets its strength and resilience from fiberglass-encased carbon fiber—“the same carbon used in the tail section of a Boeing 777 jet,” says CTC spokesman Kevin Coates. A machine pulls both the carbon and glass fibers off reels, saturates them with a temperature-resistant epoxy, and winds them in a pattern that puts the carbon in the center and the fiberglass on the outside. The epoxy-soaked fibers are pulled through a giant die containing heaters that cure the epoxy to a solid almost instantaneously. The final product is straight and solid but bendable, like a fishing rod.
PHOTO: COMPOSITE TECHNOLOGY CORP.
Composite Technology Corp.’s aluminum composite cable
The carbon fibers—40 percent stronger than steel—prevent the core from stretching. The fiberglass forms a barrier between the carbon and the aluminum conductor, preventing the galvanic corrosion that ordinarily takes place when two dissimilar metals are in contact. (Carbon has been found to act as if it were a metal in this situation.)
The core of 3M’s cable is different from that of CTC’s. Called Aluminum Conductor Composite Reinforced (ACCR), it’s composed of strands made from a matrix of aluminum oxide (the company calls it “alumina ceramic”) fibers embedded in pure aluminum, which are surrounded by wires made of hardened aluminum doped with zirconium for strength. Though the aluminum oxide core’s coefficient of thermal expansion is more than three times that of CTC’s composite core, the aluminum-zirconium wires are highly temperature resistant, so much so that the conductor can operate at 210 °C, and at 240 °C for short bursts. Another benefit: because the core also is made of aluminum, it contributes to conductivity and does not suffer from galvanic corrosion.
http://events.unisfair.com/rt/ieee06
Although each of the new cables is considerably more expensive than steel-core cable, the economics of using them are attractive because of their greater current-carrying capacity. Utah Power found that although CTC’s cable costs three times as much per meter, it was more than cost-efficient because no transmission towers needed to be erected. The composite-core cable is also lighter, so Utah Power had to replace only seven of 150 supporting towers in the corridor. If the utility company had boosted capacity by adding conventional cable to the existing towers, it would have had to replace almost all of them because of the added weight.
CTC’s Coates says that such savings were an important factor in China’s decision to use the cable. Support towers can be farther apart, and the Chinese found they could use 16 percent fewer towers, he says.
Minnesota’s Xcel chose 3M’s low-sag cable for a power-line corridor that runs through an environmentally sensitive wetland, where it wanted to avoid construction. “Without it, we would have had to replace existing towers to accommodate larger conventional conductors,” said Doug Jaeger, the utility’s vice president for transmission.
The work at 3M on ceramic fiber goes back 40 years. Anderson says 3M has used the material for other applications, such as the Space Shuttle’s heat-resistant protective tiles. He notes that the company has been working on fiber-reinforced conductors since the early 1990s.
“Developing a new core for this industry is not for wimps,” says CTC vice president Dave Bryant. “It’s a lot of work.” The company began its first demonstration projects early last year. Bryant says that since then the company has been obsessed with product longevity testing. “This is a very conservative market,” observes Coates, “and utilities are slow to embrace new technology. They want to deliver more power cheaply, but they can’t do so at the risk of affecting reliability.”
When it comes to cables with the new cores, most utilities are taking a wait-and-see stance. Seeing the medium-term results of these recent installations will help them determine whether they switch from steel cores to their low-sag alternatives.
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BTW, I would estimate that some may be bought and sold at 1.40 today.
Garth, it appears they have disappeared for the moment. UBSS sits now at 1.40.
Today's PR:
Press Release Source: Great American Food Chain, Inc.
Great American Food Chain Acquires Kokopelli Franchise Company
Wednesday August 16, 10:30 am ET
DALLAS, Aug. 16, 2006 (PRIMEZONE) -- The Great American Food Chain, Inc. (Other OTC:GAMN.PK - News), a restaurant holding company and concept developer, announced today that it has completed the acquisition of 90% interest in the Kokopelli Franchise Company, LLC, owner of Kokopelli Fresh Mexican Grill concept, from Franchise Capital Corporation (Pink Sheets:FCCN), in exchange for 720,629 of common stock in GAMN. Under terms of the agreement, all shareholders of record of FCCN stock as of August 31, 2006 will receive a dividend of 1 share of restricted common stock in GAMN for every 100 shares held in common stock of FCCN.
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GAMN's CEO Edward Sigmond was quoted as saying, ``We are very excited about the opportunity this acquisition gives The Great American Food Chain, Inc. We believe the Kokopelli Fresh Mexican Grill concept will be a major competitor in the quick service Mexican food market. An additional restaurant is scheduled to open in Livonia, a suburb of Detroit, Michigan, in September this year. Other locations are scheduled to open in Phoenix, AZ; Portland, OR; Reno, NV; Riverside, CA; Jacksonville, FL; and Charlotte, NC by the 4th quarter this year. Kokopelli Franchise Company is poised for expansion with over 70 franchises having been sold to date. By design, The Great American Food Chain has been conservative in its undertakings to date. This acquisition adds a tremendous concept to our portfolio and provides us with a presence in a vast number of markets.''
About The Great American Food Chain, Inc.
The Great American Food Chain, Inc. is a restaurant holding company specializing in the development and expansion of proven independent restaurant concepts into multi-unit locations through corporate owned stores, licensing, and franchising opportunities. The Great American Food Chain currently owns two concepts, Kokopelli Fresh Mexican Grill, and Spikes Boneyard Grill, and is finalizing a licensing agreement with a third concept. GAMN is located in Dallas, Texas. For more information about The Great American Food Chain, see http://www.thegreatamericanfoodchain.com. Information on our website is not part of this press release.
Forward-Looking Statements
Any statements in this press release about The Great American Food Chain's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the ``Act''). These statements are often, but not always, made through the use of words or phrases such as ``believe,'' ``will,'' ``expect,'' ``anticipate,'' ``estimate,'' ``intend,'' ``plan,'' ``forecast,'' ``could,'' and ``would.'' There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: limited operating history, need for future capital, risks inherent in the development and commercialization of restaurant concepts, protection of the Company's intellectual property, and economic conditions generally. Additional information on potential factors that could affect results and other risks and uncertainties are detailed from time to time in the Company's periodic reports. The Great American Food Chain claims the protection of the safe harbor for forward-looking statements under the Act and assumes no obligation and expressly disclaims any duty to update any forward-looking statement to reflect events or circumstances after the date of this news release or to reflect the occurrence of subsequent events.
Contact:
The Great American Food Chain, Inc.
Edward Sigmond
(214) 880-0446
Esigmond@gamnfc.com
Source: Great American Food Chain, Inc.
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The action of the last hour was very peculiar. One thought I had was the possibility of financier(s) driving the price down through selling shares or shorting in order to possibly get more shares in any financing that might involve share exchange. Also, could possibly have been the work of the company BESV expects to purchase from, if the selling company expects to get X number of dollars worth of BESV shares in the transaction. If any of these scenarios are occurring, it will be interesting to see if the date that any possible share exchange involved in the transaction is based on is today. It appeared as if HDSN had to get rid of the shares today because it appeared they were hitting the bid all the way to 1.20 while the next lowest offer was, I believe at 1.32. All HDSN had to do, or so it appeared, was wait til tomorrow and sell in the 1.30s. That's why I think they felt they had to sell today for whatever reason because it would appear they could have gotten more for their shares tomorrow. I think they were purposely driving the price down. I think BESV will bounce back tomorrow. What do you think?
I mentioned BESV at 1.15 last week. It is now at 1.36 and has been at 1.41 today. Expectations of two developments soon coming with the company. Hope some of you guys benefitted and will benefit from BESV.
I believe the last PR stated that they were to come soon, therefore my source who said they were already there must have been mistaken. Now, they may or may not be there now. Stock is doing well. Early morning volume looks good. I would think something is good on the horizon.
Two expectations loom where BESV is concerned: 1)The acquisition, which is rumored that it may happen this week. 2)The new rig becoming successful. Either could happen any day now. That, IMO, is the reason that person wanted 50,000 shares. I've been accumulating more for the same reasons. BTW, Derx, I'm still expecting great things from our CPTC and have a good bunch of that, as well. Float is much smaller with BESV, though. Good luck.
BESV is continuing the move upward it started Friday. Volume is much higher today also. Should be a good sign.
BESV appears to have started its move upward today, though it is had low volume. Watch it in the coming week.
SBSH has now moved their bid to 1.12 showing 500 shares to buy, but I've got to wonder if they still have a client who is at 1.11 wanting those 50,000 shares. I suspect so. It wouldn't show on my level II if they did.
I see SBSH is showing a bid of 1.11 and for 50,000 shares. That should provide some pretty good support if they stay there. High bid is 1.14 with ask at 1.15. If we can break through 1.15, we might start a decent move.