Raptor Investments, Inc. (OTC:RAPT) today announced its projected timetable for the completion of its first acquisition pursuant to the company's announcement on Monday, May 23rd that it was terminating its LOI to acquire Micro-Connections, Inc. and simultaneously shifting its strategy into the eBay drop store, retail thrift, business liquidations, and self-auction businesses. Jamie DeSane, acting CEO of Raptor, commented, "This has been in the works for quite a while, actually. Due Diligence we conducted on Micro-Connections revealed IP that might not be worth protecting, little potential for pricing power and a host of dependency issues."
Raptor Investments announced it has joined Las Vegas based Net2Auction Inc. (Pink Sheets:NAUC) and Dallas based Orbit Drop, Inc. (Pink Sheets:OBDP) in the eBay (NASDAQ:EBAY) drop store business "but with some significant differences over our eBay reliant brethren," suggests DeSane. "We liked the prospects for the business but were worried about immediate viability as a stand-alone. Every financial model we put together suggested great potential in terms of operational scale and cash flows long-term, but way too many short-term hurdles. We view drop stores as a business that depends on attaining critical mass to be successful, requiring huge capital expenditures with uncertain profitability timetables." He added, "We felt that the franchise option wasn't an option for us because it traded larger long-term cash flows for smaller more immediate cash flows."
