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Real-Time news about Zone-Ip (London Stock Exchange): 0 recent articles
eenmakkie - 5 Jun'06 - 18:48 - 812 of 828
Ki-Bi, we barely knew ye
But that was then and meanwhile, last week Reifman pulled off a creative financial move, completing the takeover of a company called Ki-Bi Mobile Technologies.
It was a year ago that Ki-Bi, an Israeli company, floated on London's AIM market, and by now its whole story has changed.
Under Reifman's direction, the company has undergone a complete makeover. It has a new owner, new employees, new operations and even a new name.
Originally Ki-Bi Mobile Technologies, which had been founded all of four years ago, was working on the development of a electronic content cards for cellphones. The Emblaze group is by and large devoted to various aspects of cellular technology and communications.
But Ki-Bi didn't really take off, its results were pathetic and the London crowd sent its stock dropping by tens of percent.
Emblaze noticed and took advantage of the drop. After the offering it had owned 10% of Ki-Bi: as the share price plunged, it bought and bought. By February 2006 it owned 30%.
At this stage, Ki-Bi's CEO, Ehud Levy, and two of its external directors, quit, and it became evident that Reifman was cooking up a cut and paste - buy the company and shovel one of Emblaze's operations into it.
Indeed, in recent months Ki-Bi basically stopped functioning. The mood in its corridors was doom and it was only a question of time until it ceased to exist, at least as was.
At the end of last week, Emblaze announced that the deed was done: Ki-Bi had bought the operations of Emblaze-VCON, one of the Emblaze units, and had fired almost all the Ki-Bi staff.
Isn't math fun
Now let's look at some surprising figures. In August 2005, Emblaze bought VCON for $1.6 million. Certain VCON shareholders, the Pitango and Index venture capital funds, received 30% of the company, which had been merged with an Emblaze unit.
Now, according to Ki-Bi's announcement from last week, Ki-Bi has bought the merged VCON-Emblaze unit for no less than $20 million. How wondrous! In less than a year, Emblaze-VCON?s value climbed tenfold.
"Since the acquisition, Emblaze has invested $5 million in VCON," the company said. "An external company evaluated Emblaz-VCON at about $20 million but ultimately it was sold according to a value of $15 million."
The purchase had been effected using shares. Now Ki-Bi (or in its new name, Zone-IP) owns 100% of Emblaze-VCON, in exchange for which the Emblaze-VCON shareholders received 60% of Ki-Bi.
Yes: the move majorly diluted the Ki-Bi shareholders, who now own 40% instead of 100%, and brought Emblaze to a probably not-coincidental 51% holding - which is exactly what it needs to consolidate financial statements and cash.
One may assume that Emblaze will post capital gains from the sale, too.
Emblaze commented that it was an insider transaction and that capital gains are minor, if there are any at all.
Grumbles in the background
It turns out however that some of the Ki-Bi shareholders, including private Israeli ones, are not amused. Ki-Bi had been trading in London at a valuation of $12 million and they have criticism about the deal.
They seem unconvinced that Zone-IP is a better company with operations worth $20 million (or $15 million). How do we know they are unpersuaded? The Zone-IP share price sank 20% in the space of two days, that's how.
Since Ki-Bi went public in April 2005, it has lost 70% of its value.
Another interesting tidbit is that the British investment bank of Collins Stewart, which had underwritten the Ki-Bi initial public offering, didn't take part in this latest move. Instead Reifman hired a little underwriter called John East & Partners.
A source near the reverse takeover, in which wee Ki-Bi bought Emblaze-VCON, said that Collins Stewart thought Emblaze-VCON was priced too high, and didn't want any part of the deal. Another source said that Collins Stewart priced its own services too high.
The transaction remains subject to the approval of shareholders at an assembly scheduled for July 12.|
|hugepants: Does anyone know what assets the video conferencing business had when it was acquired? I cant see any note of the assets acquired in the acquisition RNS. And the latest results (interims) are for KI-BI.
The share price has dropped a hell of a lot since the acquisition. Then again this is an Emblaze company. So it goes only 1 way, NOT UP. I reckon most holders of anything to do with Emblaze (ADA, ORCA, ZIP, VDI) have either hanged themselves or been committed to a lunatic asylum.|
|eenmakkie: AIM investigations in the reverse takeover by Vcon (Emblaze) and the not publisching of the financial transaction Ki-Bi card technologie?
True or not true?
True? We maybe get our 0,34 £ pre reverse takeover share price from Emblaze back?
Spiral Solutions Acquires Ki-Bi Card Mobile Content Distribution Technology
Wednesday October 18, 7:29 am ET|
|britishbear: Starting the Zone-IP thread - l
KIB and those funny musical cards is DEAD. Long live Zone-IP - another dodgy Emblaze off shoot that is bound to have a collasping share price.
I will add in a homepage and links later.|
|tiraider: ZIP is a seriously undervalued company. There is a large seller around; any buys are met with sells. So share price goes nowhere.|
|rocketeer: Interims (unaudited) out today. http://www.advfn.com/cmn/news/newsmona.php?article=3426058&epic=ZIP Hmmmmmmm.... But main news relates to a proposed acquisition that qualifies as a reverse takeover. http://www.advfn.com/cmn/news/newsmona.php?article=3426117&epic=ZIP Even bigger Hmmmmmmm...
Management state... "The Acquisition is expected to substantially increase the revenues of the company and, coupled with the proceeds of the Placings, strengthen the Company's balance sheet."
(a) Increase revenues - No information supplied about Transigent's historical earnings. In fact 'Transigent Limited' has the following companies house profile - CompanyNo:04361903 (Previous Name = Pathbeach Limited), Date of Incorporation : 28/01/2002, Next Accounts Due : 28/11/2003. In short, some digging below this level is required.
(b) Strengthen the balance sheet - How can they justify the issue of more paper in a placing at current share price levels? They claim to have good cash reserves already. So why do they need more? The implication is that the acquisition will be a net drain on existing resources. Should I conclude, it is yet another worthless loss making telecom?
Peter Dubens (Transigent Limited). Can I conclude this is the same person who is...
Co-founder of Avocet Capital Management Limited, a European technology hedge fund management business, Vice Chairman of ukbetting PLC (www.ukbetting.com), an Internet sports betting business, an Executive Director of Paradigm Media Investments PLC and an non-executive Director of Stirling Group PLC.
And the telecom business actually relates to???????
Much more information required
Anyone got the circular yet?|
|katylied: Came on board today. I like the look of this one. The board seems of better quality than one would normally expect. I do see this as an oversold recovery play, but I reckon the business also has some real merit. That type of 'tech' situation is getting harder to find these days. Most do seem to be the dogs the share price implies. However, this looks alot better than that.|
Zone-ip share price data is direct from the London Stock Exchange