Value Microcaps Free-For-All

[stanley01]

nsomniyak re: HAXS new offer

New offer will be accepted by majority shareholders. The largest majority shareholder is Sharad K. Tak of Tak Investments. He owns about 45% of stock.

Part of the deal EBIX is proposing is a total sweetheart deal for him. See below.

"We propose to pay Tak Investments a net amount of $2.5 million, for the warrants convertible to 3,333,334 shares of HealthAxis common stock. This money can only be received by Tak Investments in the form of equivalent value Ebix stock valued at $100 per share. They will be given a one year special put which will allow them to sell the stock back to Ebix (at their discretion), within a one year period from the date of merger for $100 per share. This will serve to guarantee a downside price protection on the Ebix stock. "

Additionally, the second largest shareholder, Lewis Asset Management, which owns about 23% of the total stock, has been purchasing shares lately in the open market. On Sept 23rd, they bought 26,000 shares at .47 and on Sept 30th they purchased 15,000 shares at .50. Someone is on the bid at .50 right now for 23,000 shares. I wouldn't be surprised if it is them. Obviously, they are also in favor of the EBIX merger.