Former NBA player and congressman Tom McMillen is trying to go two-for-two in homeland defense plays.
A month ago, Fortress America Acquisition (FAACU.OB:OTCBB - news - research - Cramer's Take), a so-called blank-check company dreamed up by McMillen, raised $42 million in an initial public offering. The Bethesda, Md., start-up, whose only products are the resumes of its politically connected board, hopes to use those funds to buy a company that "contracts directly with the government on homeland security projects."
After the IPO, McMillen, Fortress America's chairman, owns 6.6% of its stock. In the offering, Fortress America priced its shares at $6. Buyers into the IPO also got warrants to buy two additional shares.
***************READ HERE ***************************************** The money raised in the IPO is being held in an interest-bearing bank account until Fortress America finds a company in the homeland defense space as a merger partner. But even as that search goes on, McMillen stands to score again with another homeland defense firm he helped found.
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.