UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q
x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the
quarterly period ended September 30, 2008
OR
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the
transition period from __________________ to
______________________.
Commission
file number 001-33385
TAILWIND
FINANCIAL INC.
(Exact
Name of Registrant as Specified in its Charter)
Delaware
(State
or other jurisdiction of incorporation or organization)
|
13-4338095
(I.R.S.
Employer Identification No.)
|
Brookfield
Place, 181 Bay Street
Suite
2040
Toronto,
Ontario, Canada M5J 2T3
(Address
of principal executive offices)
(416)
601-2422
(Registrant’s
telephone number, including area code)
Indicate
by check mark whether the registrant: (1) has filed all reports required to
be
filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past
90
days:
Yes
x
No
o
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company.
See
the definitions of
"
large
accelerated filer,
"
"accelerated
filer" and "smaller reporting company"
in
Rule
12b-2 of the Exchange Act.
Large accelerated filer
o
|
Accelerated filer
x
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act):
Yes
x
No
o
Indicate
the number of shares outstanding of each of the issuer’s classes of common
stock, as of the latest practicable date: 15,625,000 shares issued and
outstanding as of October 31, 2008.
INDEX
TO FORM 10-Q
|
Page
|
PART
I. FINANCIAL INFORMATION
|
|
Item
1.
|
Financial
Statements
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
|
|
|
|
|
|
As
of September 30, 2008 (unaudited) and June 30, 2008
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Statements
of Operations (unaudited)
|
|
|
|
|
|
|
For
the three month periods ended September 30, 2008 and September
30,
2007 and the period from June 30, 2006 (inception) to September 30,
2008
|
|
3
|
|
|
|
|
|
|
|
|
Statements
of Stockholders’ Equity
|
|
|
|
|
For
the period from June 30, 2006 (inception) to September 30, 2008
(unaudited)
|
|
4
|
|
|
|
|
|
|
|
|
|
Statements
of Cash Flows (unaudited)
|
|
|
|
|
|
|
For
the three month periods ended September 30, 2008 and September
30,
2007 and the period from June 30, 2006 (inception) to September 30,
2008
|
|
5
|
|
|
|
|
|
|
|
Notes
to Unaudited Financial Statements
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
11
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
14
|
Item
4.
|
Controls
and Procedures
|
14
|
PART
II. OTHER INFORMATION
|
|
Item
1A.
|
Risk
Factors
|
14
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
14
|
Item
6.
|
Exhibits
|
14
|
PART
I.
FINANCIAL
STATEMENTS
Index
of Financial Statements
Unaudited
Financial Statements
|
Page
|
|
|
Balance Sheets as of September
30,
2008 (unaudited) and June 30, 2008
|
2
|
|
|
Statements
of Operations for the three month periods ended September 30, 2008
and
September 30, 2007
and
the period from June 30, 2006 (inception) to September 30, 2008
|
3
|
|
|
Statement of Stockholders’ Equity
for the period from June 30, 2006 (inception) to September 30,
2008
|
4
|
|
|
Statements
of Cash Flows for the three month periods ended September 30, 2008
and
September 30, 2007
and
the period from June 30, 2006 (inception) to September 30,
2008
|
5
|
|
|
Notes to Unaudited Financial
Statements
|
6
|
Tailwind
Financial Inc.
(A
Development Stage Company)
BALANCE
SHEETS
|
|
September,
30
2008
|
|
June
30,
2008
|
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
|
|
$
|
50,599
|
|
$
|
33,383
|
|
Cash
and cash equivalents held in Trust Account (Note 1)
|
|
|
102,540,855
|
|
|
102,385,238
|
|
Prepaid
expenses
|
|
|
6,875
|
|
|
13,750
|
|
Total
current assets
|
|
$
|
102,598,329
|
|
$
|
102,432,371
|
|
|
|
|
|
|
|
|
|
Fixed
assets, net of accumulated depreciation of $3,240 and
$2,565
|
|
|
4,091
|
|
|
4,766
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
102,602,420
|
|
$
|
102,437,137
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Deferred
underwriting fee (Note 4)
|
|
$
|
3,000,000
|
|
$
|
3,000,000
|
|
Accounts
payable and accrued expenses
|
|
|
617,826
|
|
|
780,161
|
|
Due
to shareholders (Note 6)
|
|
|
200,000
|
|
|
-
|
|
Income
taxes payable
|
|
|
445,500
|
|
|
402,000
|
|
Total
current liabilities
|
|
$
|
4,263,326
|
|
$
|
4,182,161
|
|
|
|
|
|
|
|
|
|
Common
stock subject to possible conversion
(3,748,750
shares at conversion value) (Note 1)
|
|
|
30,407,028
|
|
|
30,381,801
|
|
|
|
|
|
|
|
|
|
Commitments
(Note
4)
|
|
|
|
|
|
|
|
Stockholders’
Equity
(Notes
1 and 3):
|
|
|
|
|
|
|
|
Preferred
stock, par value $.01 per share, 5,000,000 shares authorized, 0 shares
issued
|
|
|
|
|
|
|
|
Common
stock, par value $.001 per share, 70,000,000 shares authorized, 11,876,250
shares issued and outstanding (excluding 3,748,750 shares subject
to
possible conversion)
|
|
|
11,876
|
|
|
11,876
|
|
Additional
paid-in capital
|
|
|
66,529,635
|
|
|
66,554,862
|
|
Retained
earnings accumulated in the development stage
|
|
|
1,390,555
|
|
|
1,306,437
|
|
|
|
|
|
|
|
|
|
Total
stockholders’ equity
|
|
|
67,932,066
|
|
|
67,873,175
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity
|
|
$
|
102,602,420
|
|
$
|
102,437,137
|
|
See
notes
to unaudited financial statements.
Tailwind
Financial Inc.
(A
Development Stage Company)
STATEMENTS
OF OPERATIONS
|
|
Three
months
ended
September
30, 2008
|
|
Three
months
ended
September
30, 2007
|
|
For
the period from June 30, 2006 (Inception) to September 30,
2008
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
326,617
|
|
$
|
1,115,336
|
|
$
|
4,411,855
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off
of deferred acquisition costs
|
|
|
-
|
|
|
-
|
|
|
1,337,802
|
|
Formation,
general and administrative expenses (Notes 4 and 5)
|
|
|
198,999
|
|
|
109,554
|
|
|
966,998
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
127,618
|
|
|
1,005,782
|
|
|
2,107,055
|
|
Income
taxes (Note 5)
|
|
|
43,500
|
|
|
346,000
|
|
|
716,500
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income for the period
|
|
$
|
84,118
|
|
$
|
659,782
|
|
$
|
1,390,555
|
|
Accretion
of Trust Account relating to common stock subject to possible
conversion
|
|
|
25,227
|
|
|
197,868
|
|
|
417,028
|
|
Net
income attributable to common stockholders
|
|
$
|
58,891
|
|
$
|
416,914
|
|
$
|
973,527
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
of shares outstanding subject to possible conversion, basic and
diluted
|
|
|
3,748,750
|
|
|
3,748,750
|
|
|
|
|
Net
income per share subject to possible conversion, basic and
diluted
|
|
$
|
0.01
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding, basic and diluted
|
|
|
11,876,250
|
|
|
11,876,250
|
|
|
|
|
Net
income per share, basic and diluted
|
|
$
|
0.00
|
|
$
|
0.04
|
|
|
|
|
See
notes
to unaudited financial statements.
Tailwind
Financial Inc.
(A
Development Stage Company)
STATEMENTS
OF STOCKHOLDERS’ EQUITY
For
the period from June 30, 2006 (Inception) to September 30,
2008
|
|
Common
Stock
|
|
Additional
|
|
|
|
Retained
earnings accumulated in the
|
|
|
|
|
|
Shares
|
|
Amount
|
|
|
|
Treasury
Stock
|
|
development
stage
|
|
Total
|
|
Balance
at June 30, 2006
|
|
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
Issuance
of Common Stock to initial stockholder
|
|
|
3,593,750
|
|
|
3,594
|
|
|
27,656
|
|
|
-
|
|
|
-
|
|
|
31,250
|
|
Proceeds
from sale of underwriter’s purchase option
|
|
|
-
|
|
|
-
|
|
|
100
|
|
|
-
|
|
|
-
|
|
|
100
|
|
Proceeds
from issuance of warrants
|
|
|
-
|
|
|
-
|
|
|
4,700,000
|
|
|
-
|
|
|
-
|
|
|
4,700,000
|
|
Sale
of 12,500,000 units through public offering net of underwriter’s discount
and offering expenses and net of $29,990,000 of proceeds allocable
to
3,748,750 shares of common stock subject to possible
conversion
|
|
|
8,751,250
|
|
|
8,751
|
|
|
62,315,040
|
|
|
-
|
|
|
-
|
|
|
62,323,791
|
|
Forfeiture
of common stock issued to initial stockholder
|
|
|
-
|
|
|
-
|
|
|
3,520,312
|
|
|
(3,520,312
|
)
|
|
-
|
|
|
-
|
|
Cancellation
of common stock received from initial stockholder (Note 1)
|
|
|
(468,750
|
)
|
|
(469
|
)
|
|
(3,519,843
|
)
|
|
3,520,312
|
|
|
-
|
|
|
-
|
|
Additional
cost of initial public offering
|
|
|
-
|
|
|
-
|
|
|
(96,602
|
)
|
|
-
|
|
|
-
|
|
|
(96,602
|
)
|
Net
income for the period
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,306,437
|
|
|
1,306,437
|
|
Accretion
of Trust Account relating to common stock subject to possible conversion
|
|
|
-
|
|
|
-
|
|
|
(391,801
|
)
|
|
-
|
|
|
-
|
|
|
(391,801
|
)
|
Balance
at June 30, 2008
|
|
|
11,876,250
|
|
|
11,876
|
|
$
|
66,554,862
|
|
|
-
|
|
$
|
1,306,437
|
|
$
|
67,873,175
|
|
Net
income for the period (unaudited)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
84,118
|
|
|
84,118
|
|
Accretion
of Trust Account relating to common stock subject to possible conversion
(unaudited)
|
|
|
-
|
|
|
-
|
|
|
(25,227
|
)
|
|
-
|
|
|
-
|
|
|
(25,227
|
)
|
Balance
at September 30, 2008 (unaudited)
|
|
|
11,876,250
|
|
|
11,876
|
|
$
|
66,529,635
|
|
|
-
|
|
$
|
1,390,555
|
|
$
|
67,932,066
|
|
See
notes
to unaudited financial statements.
Tailwind
Financial Inc.
(A
Development Stage Company)
STATEMENTS
OF CASH FLOWS
|
|
Three
months
ended
September
30, 2008
|
|
Three
months
ended
September
30
,
2007
|
|
For
the period from June 30, 2006 (Inception) to
September
30, 2008
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net
income for the period
|
|
$
|
84,118
|
|
$
|
659,782
|
|
$
|
1,390,555
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation
of fixed assets
|
|
|
675
|
|
|
-
|
|
|
3,240
|
|
Prepaid
expenses
|
|
|
6,875
|
|
|
16,665
|
|
|
(6,875
|
)
|
Accounts
payable and accrued expenses
|
|
|
(162,335
|
)
|
|
81,421
|
|
|
517,826
|
|
Income
taxes payable
|
|
|
43,500
|
|
|
346,000
|
|
|
445,500
|
|
Net
cash provided by (used in) operating activities
|
|
$
|
(27,167
|
)
|
$
|
1,103,868
|
|
$
|
2,350,246
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Cash
contributed to Trust Account
|
|
|
-
|
|
|
-
|
|
|
(100,000,000
|
)
|
Interest
reinvested in Trust Account
|
|
|
(326,617
|
)
|
|
(1,015,336
|
)
|
|
(4,411,855
|
)
|
Cash
transferred from Trust Account to operations
|
|
|
171,000
|
|
|
|
|
|
1,871,000
|
|
Purchase
of fixed assets
|
|
|
-
|
|
|
(5,399
|
)
|
|
(7,331
|
)
|
Net
cash used in investing activities
|
|
$
|
(155,617
|
)
|
$
|
(1,020,735
|
)
|
$
|
(102,548,186
|
)
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from issuance of common stock to initial stockholder
|
|
|
-
|
|
|
-
|
|
|
31,250
|
|
Proceeds
from notes payable to initial stockholder
|
|
|
-
|
|
|
-
|
|
|
368,750
|
|
Repayment
of notes payable to initial stockholder
|
|
|
-
|
|
|
-
|
|
|
(368,750
|
)
|
Proceeds
from issuance of insider warrants
|
|
|
-
|
|
|
-
|
|
|
4,700,000
|
|
Proceeds
from issuance of underwriter’s purchase option
|
|
|
-
|
|
|
-
|
|
|
100
|
|
Portion
of net proceeds from sale of units through public offering allocable
to
shares of common stock subject to possible conversion
|
|
|
-
|
|
|
-
|
|
|
29,990,000
|
|
Net
proceeds from sale of units through public offering allocable
to:
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity
|
|
|
-
|
|
|
-
|
|
|
62,423,791
|
|
Deferred
underwriting fees
|
|
|
-
|
|
|
-
|
|
|
3,000,000
|
|
Loan
from shareholders
|
|
|
200,000
|
|
|
-
|
|
|
200,000
|
|
Additional
cost of initial public offering
|
|
|
-
|
|
|
(96,602
|
)
|
|
(96,602
|
)
|
Net
cash provided by (used in) financing activities
|
|
$
|
200,000
|
|
$
|
(96,602
|
)
|
$
|
100,248,539
|
|
Net
increase (decrease) in cash
|
|
|
17,216
|
|
|
(13,469
|
)
|
|
50,599
|
|
Cash
|
|
|
|
|
|
|
|
|
|
|
Beginning
of period
|
|
|
33,383
|
|
|
129,799
|
|
|
-
|
|
End
of period
|
|
$
|
50,599
|
|
$
|
116,330
|
|
$
|
50,599
|
|
Supplemental
disclosure of non-cash financing activities:
|
|
|
|
|
|
|
|
|
|
|
Fair
value of underwriter’s purchase option included in offering
costs
|
|
|
-
|
|
|
-
|
|
$
|
1,108,000
|
|
Accretion
of Trust Account relating to common stock subject to possible
conversion
|
|
$
|
25,227
|
|
$
|
197,868
|
|
$
|
417,028
|
|
Cash
paid for income taxes
|
|
|
-
|
|
|
-
|
|
$
|
271,000
|
|
See
notes
to unaudited financial statements.
TAILWIND
FINANCIAL INC.
(A
Development Stage Company)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
NOTE
1—ORGANIZATION AND BUSINESS OPERATIONS
Tailwind
Financial Inc. (the "Company"), was incorporated in Delaware on
June 30, 2006 as a blank check development stage company whose objective is
to acquire, through a purchase, asset acquisition, or other business combination
(each a "Business Combination") one or more operating businesses.
As
of
September 30, 2008, the Company is a development stage company. All activity
through September 30, 2008 relates to the Company's formation, public offering
described below (the "Offering"), and activities relating to identification
of and negotiations with a suitable business combination candidate (See Note
7 -
Activities
in Pursuit of a Business Combination
).
The
Company consummated the Offering on April 17, 2007. The Company's management
has
broad discretion with respect to the specific application of the net proceeds
of
the Offering, although substantially all of the net proceeds of the Offering
are
intended to be generally applied toward consummating a Business Combination.
Furthermore, there is no assurance that the Company will be able to successfully
consummate a Business Combination. Upon the closing of the Offering, 100% of
the
proceeds were deposited in a trust account ("Trust Account") and invested only
in "government securities" or in money market funds meeting certain conditions
under Rule 2a-7 promulgated under the Investment Company Act of 1940 until
the earlier of (i) the consummation of a first Business Combination or
(ii) dissolution and liquidation of the Company. The Company, after signing
a definitive agreement for the acquisition of a target business, will submit
such transaction for stockholder approval. In the event that stockholders owning
30% or more of the shares sold in the Offering vote against the Business
Combination and exercise their conversion rights described below, the Business
Combination will not be consummated. All of the Company's stockholders prior
to
the Offering, including all of the officers and directors of the Company
("Initial Stockholders"), have agreed to vote their founding shares of common
stock in accordance with the vote of the majority in interest of all other
stockholders of the Company ("Public Stockholders") with respect to any Business
Combination. After consummation of a Business Combination, these voting
safeguards will no longer be applicable.
With
respect to a Business Combination which is approved and consummated, any Public
Stockholder who voted against the Business Combination may demand that the
Company convert his or her shares. The per share conversion price will equal
the
amount in the Trust Account, calculated as of two business days prior to the
consummation of the proposed Business Combination, divided by the number of
shares of common stock held by Public Stockholders at the consummation of the
Offering. Accordingly, Public Stockholders holding 29.99% of the aggregate
number of shares owned by all Public Stockholders may seek conversion of their
shares in the event of a Business Combination. Such Public Stockholders are
entitled to receive their per share interest in the Trust Account computed
without regard to the shares held by the Initial Stockholders. An amount
of
$29,990,000
(plus accretion of $417,028 aggregating $30,407,028) has been classified as
common stock subject to possible conversion in the balance sheet as at September
30, 2008.
On
March 14, 2007, the Company's amended and restated certificate of
incorporation was filed which provides for the Company's common stock to have
a
par value of $0.001 per share (as retroactively reflected in the financial
statements). On April 12, 2007, the Company amended and restated its
certificate of incorporation to provide for mandatory dissolution of the Company
and subsequent liquidation of the funds held in the Trust Account in the event
that the Company does not consummate a Business Combination or execute a letter
of intent, agreement in principal or definitive agreement for a Business
Combination within 18 months from the date of the consummation of the
Offering (October 17, 2008). It also provides that 24 months from
consummation of the Offering the Company's corporate existence will cease (April
17, 2009) unless certain extension criteria are met. On March 14, 2007, the
Company's Board of Directors declared a 1 for 1.15 stock split in the
form of a stock dividend (as retroactively reflected in the financial
statements). In the event of dissolution and liquidation, it is likely that
the
per share value of the residual assets remaining available for distribution
(including Trust Account assets) will be less than the initial public offering
price per share in the Offering (assuming no value is attributed to the warrants
contained in the units offered in the Offering discussed in Note 3). The
amended and restated certificate of incorporation authorizes 5,000,000 shares
of
preferred stock and 70,000,000 shares of common stock.
TAILWIND
FINANCIAL INC.
(A
Development Stage Company)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS (Continued)
The
Initial Stockholders, at the time of the public offering, held 3,593,750 shares
(after the 1 for 1.15 stock split referred to above). 468,750 of these shares
would be redeemed if the underwriters’ over allotment option was not exercised.
Since, on May 17, 2007, the overallotment option was not exercised, the Initial
Stockholder returned the 468,750 shares to the Company for cancellation. At
the
date of the return and cancellation, management determined the fair value to
be
$7.51 per share based on the common stock closing price on May 17, 2007.
Accordingly, on May 17, 2007, the Company recorded the $3,520,312 value of
the
shares contributed to treasury stock and a $3,520,312 corresponding credit
to
additional paid-in capital. Upon receipt, such shares were then immediately
cancelled by the Company which resulted in the retirement of the treasury stock
and a corresponding charge to additional paid-in capital and common
stock.
As
indicated in the accompanying financial statements, at September 30, 2008,
the
Company has earned interest income on funds held in the Trust Account. Further,
the Company has incurred and expects to continue to incur significant costs
in
pursuit of its financing and acquisition plans. There is no assurance that
the
Company’s plans to consummate a Business Combination will be successful or
successful within the target business acquisition period (see Note 7 -
Activities in Pursuit of a Business Combination).
NOTE
2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
accompanying financial statements are unaudited and have been prepared in
accordance with principles generally accepted in the United States of America
("GAAP") for interim financial information and with the instructions to Form
10-Q. Accordingly, certain information and footnote disclosures normally
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States have been omitted pursuant
to
such rules and regulations. These financial statements should be read in
conjunction with the Company’s audited financial and related disclosures for the
fiscal year ended June 30, 2008, included in the Company’s Form 10-K, filed on
September 15, 2008.
In
the
opinion of management, all adjustments (consisting primarily of normal accruals)
have been made that are necessary to present fairly the financial position
of
the Company. Operating results for the interim periods presented are not
necessarily indicative of the results to be expected for a full
year.
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingencies at the date of the financial
statements and the reported amounts of expenses during the reporting period.
Actual amounts could differ from those estimates.
Cash
and Cash Equivalents
The
Company considers all highly liquid investments with original maturities of
three months or less to be cash equivalents.
Deferred
Acquisition Costs
Costs
related to proposed acquisitions are capitalized and in the event an acquisition
does not occur, the costs are expensed.
Fixed
Assets
Fixed
assets consist of computer equipment at a cost of $7,331 and are depreciated
on
a straight line basis over two years.
TAILWIND
FINANCIAL INC.
(A
Development Stage Company)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS (Continued)
Concentration
of Credit Risk
Financial
instruments that potentially subject the Company to credit risk consist of
cash
and cash equivalents. The Company’s policy is to limit the amount of credit
exposure to any one financial institution and place investments with financial
institutions evaluated as being creditworthy, or in short-term money market
funds which are exposed to minimal interest rate and credit risk.
Income
Taxes
The
Company recognizes deferred tax assets and liabilities for the expected future
tax consequences of events that have been recognized in the Company’s financial
statements or tax returns. Under this method, deferred tax assets and
liabilities are determined based on the difference between the financial
statement carrying amounts and the tax bases of assets and liabilities using
enacted tax rates in effect in the years in which the differences are expected
to reverse.
Fair
Value Measurements
In
September 2006, the FASB issued Statement No. 157, Fair Value Measurements
(
"
SFAS
No.
157
"
).
SFAS
No. 157 provides guidance for using fair value to measure assets and
liabilities. This statement clarifies the principle that fair value should
be
based on the assumptions that market participants would use when pricing the
asset or liability. SFAS No. 157 establishes a fair value hierarchy, giving
the
highest priority to quoted prices in active markets and the lowest priority
to
unobservable data. SFAS No. 157 applies whenever other standards require assets
or liabilities to be measured at fair value.
Effective
July 1, 2008, the Company implemented SFAS Statement No. 157, which did not
have
an impact on the Company’s financial results.
The
following table presents certain of the Company’s assets that are measured at
fair value as of September 30, 2008. In general, fair values determined by
Level
1 inputs utilize quoted prices in active markets and the fair values described
below were determined through market, observable and corroborated
sources.
Description
|
|
September
30, 2008
|
|
Quoted
Prices in Active Markets
(Level
1)
|
|
Cash
|
|
|
50,599
|
|
|
50,599
|
|
Cash
and cash equivalents held in Trust Account (Note 1)
|
|
|
102,540,855
|
|
|
102,540,855
|
|
Total
|
|
$
|
102,591,454
|
|
$
|
102,591,454
|
|
In
accordance with the provisions of FSP No. FAS 157-2, Effective Date of FASB
Statement No. 157, the Company has elected to defer implementation of SFAS
157
as it relates to its non-financial assets and non-financial liabilities and
is
evaluating the impact, if any, this standard will have on its financial
statements.
Earnings
Per Common Share
Basic
net
income per share is calculated by dividing net income attributable to common
stockholders by the weighted average number of common shares outstanding during
the period. Calculation of the weighted average common shares outstanding during
the period is based on 3,593,750 initial shares outstanding throughout the
period from June 30, 2006 (inception) to September 30, 2008, 468,750 initial
shares cancelled by the Company on May 17, 2007 (retroactively restated for
this
calculation to June 30, 2006) and 8,751,250 common shares outstanding after
the
completion of the Offering on April 17, 2007. Basic net income per share subject
to possible conversion is calculated by dividing accretion of the Trust Account
relating to common stock subject to possible conversion by 3,748,750 common
shares subject to possible conversion. Diluted earnings per share reflects
the
potential dilution that could occur if securities or other contracts to issue
common stock were exercised or converted into common stock or resulted in the
issuance of common stock that then shared in the earnings of the entity. Since
the effect of outstanding warrants to purchase common stock and the outstanding
unit purchase option issued to Deutsche Bank Securities Inc. are antidilutive,
they have been excluded from the Company’s computation of net income per share
(see Note 3).
TAILWIND
FINANCIAL INC.
(A
Development Stage Company)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS (Continued)
Recently
Issued Accounting Standards
In
December 2007, the FASB issued SFAS 141 (revised 2007), Business Combinations,
(
"
SFAS
141(R)
"
).
SFAS
141(R) retains the fundamental requirements of the original pronouncement
requiring that the purchase method be used for all business combinations, but
also provides revised guidance for recognizing and measuring identifiable assets
and goodwill acquired, liabilities assumed, and any noncontrolling interest
in
the acquiree. It also requires the recognition of assets acquired and
liabilities assumed arising from contingencies, the capitalization of in-process
research and development at fair value, and the expensing of acquisition-related
costs as incurred. SFAS 141(R) is effective for fiscal years beginning
after December 15, 2008. In the event that the Company completes
acquisitions subsequent to its adoption of SFAS 141(R), the application of
its
provisions will likely have a material impact on the Company’s results of
operations, although the Company is not currently able to estimate that impact.
In
December 2007, the FASB issued SFAS 160,
Noncontrolling
Interests in Consolidated Financial Statements—an amendment of ARB
No. 51
.
SFAS
160 requires that ownership interests in subsidiaries held by parties other
than
the parent, and the amount of consolidated net income, be clearly identified,
labeled and presented in the consolidated financial statements. It also requires
once a subsidiary is deconsolidated, any retained noncontrolling equity
investment in the former subsidiary be initially measured at fair value.
Sufficient disclosures are required to clearly identify and distinguish between
the interests of the parent and the interests of the noncontrolling owners.
It
is effective for fiscal years beginning after December 15, 2008, and
requires retroactive adoption of the presentation and disclosure requirements
for existing minority interests. All other requirements are applied
prospectively. The Company does not expect the adoption of SFAS 160 to have
a
material impact on its financial condition or results of
operations.
The
Company does not believe that any other recently issued, but not yet effective,
accounting standards, if currently adopted, would have a material effect on
the
accompanying financial statements.
NOTE
3—PUBLIC OFFERING
In
the
Offering, the Company sold to the public 12,500,000 units (
"
Units
"
)
at a
price of $8.00 per Unit. Proceeds from the Offering totaled approximately
$95,300,000, which was net of approximately $4,700,000 in underwriting fees
and
other
expenses paid at closing or previously. The Company also sold in a private
placement immediately prior to the Offering 4,700,000 warrants for proceeds
of
$4,700,000.
Each
Unit
consists of one share of the Company's common stock, $0.001 par value, and
one
Callable Common Stock Purchase Warrant ("Warrant"). Each Warrant entitles the
holder to purchase from the Company one share of common stock at an exercise
price of $6.00 commencing upon consummation of a Business Combination and
expiring April 11, 2011. The Warrants are callable at a price of $.01 per
Warrant upon 30 days' notice after the Warrants become exercisable, only in
the
event that the last sale price of the common stock is at least $11.50 per share
for any 20 trading days within a 30 trading day period ending on the third
day
prior to the date on which notice of the call is given. The Company may not
call
the warrants unless the warrants and the shares of common stock underlying
the
warrants are covered by an effective registration statement from the beginning
of the measurement period through the date fixed for the call.
The
Company's obligation is to use its best efforts in connection with the
registration rights agreement and upon exercise of the Warrants, it can satisfy
its obligation by delivering unregistered shares of common stock. If a
registration statement is not effective at the time a warrant is exercised,
the
Company will not be obliged to deliver common stock, and there are no contracted
penalties for failure to do so.
The
Company sold the Units issued in the Offering to Deutsche Bank Securities Inc.
at a price per share equal to $7.44 (a discount of $0.56 per share), resulting
in an aggregate underwriting discount to Deutsche Bank Securities Inc. of
$7,000,000. The Company also sold to Deutsche Bank Securities Inc., for $100,
an
option to purchase up to a total of 625,000 units. The Company accounted for
the
fair value of the option as an expense of the Offering resulting in a charge
to
stockholders equity with an equivalent increase in additional paid-in capital.
The Company has determined, based upon a Black-Scholes model, that the fair
value of the option on the date of sale was approximately $1.1 million using
an
expected life of four years, volatility of 27.96% and a risk-free interest
rate
of 4.65%.
TAILWIND
FINANCIAL INC.
(A
Development Stage Company)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS (Continued)
The
units
issuable upon exercise of the above noted option are identical to those offered
in the Offering except that the warrants included in the option have an exercise
price of $7.20 per share (120% of the exercise price of the Warrants included
in
the Units sold in the Offering). This option is exercisable at $9.60 per unit
commencing upon consummation of a Business Combination and expiring April 11,
2011. The option and the 625,000 units, the 625,000 shares of common stock
and
the 625,000 warrants underlying such units, and the 625,000 shares of common
stock underlying such warrants, have been deemed compensation by the NASD and
are therefore subject to a 180-day lock-up pursuant to Rule 2710(g)(1) of the
NASD Conduct Rules. Additionally, the option may not be sold, transferred,
assigned, pledged or hypothecated for a one-year period (including the foregoing
180-day period) following the effective date of the registration statement
except to any underwriter and selected dealer participating in the offering
and
their bona fide officers or partners. The option and its underlying securities
have been registered under the registration statement of which the Offering
prospectus forms a part. The exercise price and number of units issuable upon
exercise of the option may be adjusted in certain circumstances including in
the
event of a stock dividend, extraordinary dividend, our recapitalization,
reorganization, merger or consolidation. However, the option will not be
adjusted for issuances of common stock at a price below the exercise price
of
the warrants included in the option.
NOTE
4—COMMITMENTS
The
Company utilizes certain administrative, technology and secretarial services,
as
well as certain limited office space provided by an affiliate of one of the
Initial Stockholders. Such affiliate has agreed that, until the consummation
of
a Business Combination, it will make such services available to the Company,
as
may be required by the Company from time to time. The Company has agreed to
pay
such affiliate $7,500 per month for such services commencing on the effective
date of the Offering. Included in formation, general and administrative expenses
for the three month period ended September 30, 2008 is $22,500 of such costs
($135,000 for the period from June 30, 2006 to September 30, 2008).
In
connection with the Offering, the Company entered into an underwriting agreement
(the "Underwriting Agreement") with the underwriters in the Offering. Pursuant
to the Underwriting Agreement, the Company was obligated to pay the underwriter
for certain fees and expenses related to the Offering, including underwriters
discounts of $7,000,000. The Company paid $4,000,000 of the underwriting
discount upon closing of the Offering. The Company and the underwriters
have
agreed that payment of the balance of the underwriting discount of $3,000,000
will be deferred until consummation of the Business Combination. Accordingly,
a
deferred underwriting fee comprised of the deferred portion of the underwriting
discount is included in the accompanying balance sheet at September 30,
2008.
NOTE
5—TAXES
Provision
for income taxes for the three month period ended September 30, 2008 consists
of
current federal tax of $43,500 ($716,500 for the period from June 30, 2006
to
September 30, 2008).
The
Company’s effective tax rate approximates the federal statutory rate. No
provision for state and local income taxes has been made since the Company
was
formed as a vehicle to effect a Business Combination and, as a result does
not
conduct operations and is not engaged in a trade or business in any state.
The
Company is incorporated in Delaware and accordingly is subject to franchise
taxes. Delaware franchise tax expense of $31,000 for the three month period
ended September 30, 2008 ($199,214 for the period from June 30, 2006 to
September 30, 2008), are included as part of general and administrative expenses
in the accompanying statements of operations.
NOTE
6—DUE TO SHAREHOLDERS
During
the quarter, the Company received a loan from the Initial Stockholder of
$200,000. The loan is non-interest bearing and due on demand.
NOTE
7—ACTIVITIES IN PURSUIT OF A BUSINESS COMBINATION
On
January 8, 2008, the Company announced that it had entered into an agreement
and
plan of merger with Asset Alliance Corporation ("Asset Alliance"), a
multi-faceted investment management firm specializing in alternative
investments, whereby the Company would have acquired all the outstanding common
stock of Asset Alliance in exchange for shares of the Company’s common stock,
allowing Asset Alliance to access the public markets through the proposed
transaction with the Company.
In
connection with the proposed transaction, the Company incurred approximately
$1.3 million of acquisition costs which costs were written off effective June
30, 2008. On August 6, 2008 the Company formally provided notice to Asset
Alliance of its decision to terminate the agreement and plan of merger.
On
August
27, 2008, the Company announced that it had signed a letter of intent with
GrandUnion Inc., a shipping company headquartered in Piraeus, Greece,
contemplating the acquisition by Tailwind of 20 vessels operating the dry bulk
industry, including nine new buildings to be delivered in 2010 and 2011. On
October 28, 2008, the Company announced that it had terminated this letter
of
intent in accordance with its terms effective October 25, 2008.
Item
2.
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
This
Quarterly Report on Form 10-Q includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Such
forward-looking statements include statements regarding, among others,
(a) our expectations about possible business combinations, (b) our
growth strategies, (c) our future financing plans, and (d) our
anticipated needs for working capital. Forward-looking statements, which involve
assumptions and describe our future plans, strategies, and expectations, are
generally identifiable by use of the words "may," "will," "should," "expect,"
"anticipate," "approximate," "estimate," "believe," "intend," "plan," or
"project," or the negative of these words or other variations on these words
or
comparable terminology. This information may involve known and unknown risks,
uncertainties, and other factors that may cause our actual results, performance,
or achievements to be materially different from the future results, performance,
or achievements expressed or implied by any forward-looking statements. These
statements may be found in this 10-Q. Actual events or results may differ
materially from those discussed in forward-looking statements as a result of
various factors, including, without limitation, the risks described in this
10-Q. In light of these risks and uncertainties, the events anticipated in
the
forward-looking statements may or may not occur.
Forward-looking
statements are based on our current expectations and assumptions regarding
our
business, the economy and other future conditions. Because forward-looking
statements relate to the future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to predict.
Our actual results may differ materially from those contemplated by the
forward-looking statements. We caution you therefore that you should not rely
on
any of these forward-looking statements as statements of historical fact or
as
guarantees or assurances of future performance. Important factors that could
cause actual results to differ materially from those in the forward-looking
statements include regional, national or global political, economic, business,
competitive, market and regulatory conditions and the following:
|
·
|
our
status as a development stage
company;
|
|
·
|
our
dissolution or liquidation prior to a business
combination;
|
|
·
|
the
reduction of the proceeds held in the Trust Account due to third
party
claims;
|
|
·
|
our
selection of a prospective target business or
asset;
|
|
·
|
our
issuance of our capital shares or incurrence of debt to consummate
a
business combination;
|
|
·
|
our
ability to consummate an attractive business combination due to
our
limited resources and the significant competition for business
combination
opportunities;
|
|
·
|
our
dependence on our key personnel;
|
|
·
|
conflicts
of interest of our officers, directors and existing
investors;
|
|
·
|
potential
future affiliations of our officers and directors with competing
businesses;
|
|
·
|
our
ability to obtain additional financing if
necessary;
|
|
·
|
the
control by our private stockholders of a substantial interest in
us;
|
|
·
|
our
common stock becoming subject to the penny stock rules of the Securities
and Exchange Commission (the
"SEC");
|
|
·
|
the
adverse effect the outstanding warrants and the unit purchase option
may
have on the market price of our common
shares;
|
|
·
|
the
existence of registration rights with respect to the securities
owned by
our founding stockholders and the securities underlying the unit
purchase
option granted to Deutsche Bank Securities
Inc.;
|
|
·
|
our
being deemed an investment company;
|
|
·
|
the
lack of a market for our
securities;
|
|
·
|
costs
of complying with United States securities laws and
regulations;
|
|
·
|
risks
of acquiring and operating a business outside the United States;
and
|
|
·
|
regulatory
risks and operational risks.
|
Please
see Part II, Item 1A of this Form 10-Q and our previously filed Form 10-Q and
Form 10-K for additional risk factors.
Any
forward-looking statement made by us speak only as of the date on which we
make
it, and is expressly qualified in its entirety by the foregoing cautionary
statements. Factors or events that could cause our actual results to differ
may
emerge from time to time, and it is not possible for us to predict all of them.
We undertake no obligation to publicly update any forward-looking statement,
except as required by law, whether as a result of new information, future
developments or otherwise.
We
were
formed on June 30, 2006 to consummate a merger, capital stock exchange, asset
acquisition, exchangeable share transaction or other similar business
combination with an operating business. Our initial business combination must
be
with a business or businesses whose collective fair market value is at least
equal to 80% of our net assets (excluding the amount held in the
Trust
Account
representing a portion of the underwriters’ discount) at the time of the
acquisition.
On
April
17, 2007, we completed the Offering of 12,500,000 Units. Each Unit consists
of
one share of our common stock, par value $0.001 per share, (the
"
Common
Stock
"
)
and one
warrant entitling the holder to purchase one share of our Common Stock at a
price of $6.00. The public offering price of each Unit was $8.00, and we
generated gross proceeds of $100,000,000 in the Offering. Of the gross proceeds:
(i) we deposited $95,300,000 into a trust account at JP Morgan Chase Bank,
NA,
maintained by American Stock Transfer & Trust Company, as trustee, which
included $3,000,000 of deferred underwriting discount; (ii) the underwriters
received $4,000,000 as underwriting discount (excluding the deferred
underwriting discount); and (iii) we retained $600,000 for offering expenses,
plus $100,000 for working capital. In addition, we deposited into the trust
account $4,700,000 that we received from the issuance and sale of 4,700,000
warrants to Parkwood Holdings Ltd., an entity owned 37.5% by our Chairman,
Gordon McMillan, 12.5% by our CEO, Andrew McKay and 50% by JovFunds Management
Inc.
We
intend
to use substantially all of the funds held in the trust account, less the
payment due the underwriter for the deferred underwriting discount, in
connection with a target business. However, as long as we consummate a business
combination with one or more target acquisitions with a fair market value equal
to at least 80% of our net assets (excluding the amount held in the trust
account representing the underwriters' deferred discount), we may use the assets
in the trust account for any purpose we may choose. To the extent that our
capital stock or debt is used in whole or in part as consideration to consummate
a business combination, the remaining proceeds held in the trust account will
be
used as working capital, including director and officer compensation,
change-in-control payments or payments to affiliates, or to finance the
operations of the target business, make other acquisitions and pursue our growth
strategies.
The
funds
available to us outside of the trust account ($100,000) and up to
$1,600,000 of the interest earned on the trust account will be used to identify
and evaluate prospective acquisition candidates, to perform business due
diligence on prospective target businesses, to travel to and from offices,
plants or similar locations of prospective target businesses, to select the
target business to acquire and to structure, negotiate, and consummate the
business combination. Messrs. McMillan and McKay and JovFunds each have
jointly and severally agreed to pay, on our behalf any expenses in excess of
$1,700,000 that we may incur in connection with our pursuit of a business
combination. Such amounts will be reimbursed upon consummation of our initial
business combination. In this context, the Company received a loan from Parkwood
Holdings Ltd. due on demand for $200,000 during the quarter ended September
30, 2008.
As
indicated in the accompanying financial statements, at September 30, 2008,
we
had $50,599 in cash and $102,540,855 in cash held in the trust account. Further,
we have incurred and expect to continue to incur significant costs in pursuit
of
our financing and acquisition plans. We cannot assure you that our plan to
consummate a business combination will be successful. We must complete a
business combination with a fair market value of at least 80% of our net assets
(excluding the amount held in the trust account representing a portion of the
underwriters’ discount) at the time of acquisition by April 17, 2009. These
factors, among others, raise substantial doubt as to our ability to continue
as
a going concern.
For
the
three month period ended September 30, 2008, we had net income of $84,118,
consisting of interest income of $326,617 less costs attributable to
organization, formation and general and administrative expenses of $198,999
and
net of a provision for income taxes of $43,500. Through September 30, 2008
we
did not engage in any significant operations. Our entire activity from inception
through September 30, 2008 was to prepare for the Offering and begin the
identification of and negotiations with suitable business combination
candidates.
Our
financial statements as of and for the period ending June 30, 2008 were audited,
and we filed these audited financial statements in our annual report on Form
10-K filed on September 15, 2008.
On
January 8, 2008, the Company announced that it had entered into an agreement
and
plan of merger with Asset Alliance Corporation ("Asset Alliance"), a
multi-faceted investment management firm specializing in alternative
investments, whereby we would have acquired all the outstanding common stock
of
Asset Alliance in exchange for shares of our common stock, allowing Asset
Alliance to access the public markets through the proposed transaction with
us.
In
connection with the proposed transaction, we incurred approximately $1.3 million
of acquisition costs which costs were written off effective June 30, 2008.
On
August 6, 2008, we formally provided notice to Asset Alliance of our decision
to
terminate the agreement and plan of merger.
On
August
27, 2008, the Company announced that it had signed a letter of intent with
GrandUnion Inc., a shipping company headquartered in Piraeus, Greece,
contemplating the acquisition by Tailwind of 20 vessels operating the dry bulk
industry, including nine new buildings to be delivered in 2010 and 2011. On
October 28, 2008, the Company announced that it had terminated this letter
of
intent in accordance with its terms effective October 25, 2008.
Item
3.
Quantitative
and Qualitative Disclosures About Market Risk
To
date,
our efforts have been limited to organizational activities and activities
relating to our initial public offering and the identification of a target
business. We have neither engaged in any operations nor generated any revenues.
As the proceeds from our initial public offering held in the trust account
have
been invested in short term investments, our only market risk exposure relates
to fluctuations in interest.
As
of
September 30, 2008, $102,540,855 of the net proceeds of our initial public
offering (including accrued interest) was held in the trust account for the
purposes of consummating a business combination. American Stock
Transfer & Trust Company, the trustee, has invested the money held in
the trust account at JPMorgan Chase Bank, NA.
We
have
not engaged in any hedging activities since our inception on June 30, 2006.
We do not expect to engage in any hedging activities with respect to the market
risk to which we are exposed.
Item
4.
Controls
and Procedures
We
maintain disclosure controls and procedures designed to ensure that information
required to be disclosed in our periodic filings with the SEC under the Exchange
Act, including this report, is recorded, processed, summarized and reported
on a
timely basis. These disclosure controls and procedures include controls and
procedures designed to ensure that information required to be disclosed under
the Exchange Act is accumulated and communicated to our management on a timely
basis to allow decisions regarding required disclosure. Management, including
our chief executive officer and chief financial officer, has evaluated the
effectiveness of the design and operation of our disclosure controls and
procedures (as defined under Rules 13a-15(e) and 15(d)-15(e) of the Exchange
Act) as of September 30, 2008. Based upon that evaluation, management has
concluded that our disclosure controls and procedures were effective as of
the
end of the period covered by this report.
There
has
not been any change in our internal control over financial reporting during
the
three month period ended September 30, 2008 that has materially affected, or
is
reasonably likely to materially affect, our internal control over financial
reporting.
PART
II.
OTHER
INFORMATION
Item
1A.
Risk
Factors
There
have been no material changes from the risk factors as previously disclosed
in
our Annual Report on Form 10-K for the fiscal year ended June 30,
2008.
Item
2.
Unregistered
Sales of Equity Securities and Use of Proceeds.
Use
of Proceeds
On
April
17, 2007, we consummated our initial public offering of 12,500,000 Units. Each
Unit consists of one share of our Common Stock and one warrant entitling the
holder to purchase from us one share of our Common Stock at an exercise price
of
$6.00. The Units were sold at an offering price of $8.00 per unit, generating
total gross proceeds of $100,000,000. Deutsche Bank Securities Inc. acted as
representative of the underwriters. The securities sold in the offering were
registered under the Securities Act of 1933 on a registration statement on
Form
S-1 (No. 333-
135790
)
that
was declared effective on April 11, 2007.
Of
the
gross proceeds from the Offering: (i) we deposited $95,300,000 into a trust
account at JP Morgan Chase Bank, NA, maintained by American Stock Transfer
&
Trust Company, as trustee, which amount included $3,000,000 of deferred
underwriting discount; (ii) the underwriters received $4,000,000 as underwriting
discount (excluding the deferred underwriting discount); and (iii) we used
$782,811 for offering expenses.
Item
6.
Exhibits.
Exhibit
Number
|
Exhibit
Description
|
10.1
|
Promissory
Note between Tailwind Financial Inc. and Parkwood Holdings Ltd.,
dated
September 25, 2008
|
31.1
|
Certification
by Principal Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
31.2
|
Certification
by Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
32.1
|
Certification
by Principal Executive Officer pursuant to 18 U.S.C. Section 1350,
as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
32.2
|
Certification
by Principal Financial Officer pursuant to 18 U.S.C. Section 1350,
as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
|
|
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
|
|
|
|
TAILWIND
FINANCIAL INC.
|
|
|
|
Date:
November 10, 2008
|
By:
|
/s/
Andrew A. McKay
|
|
Andrew
A. McKay
Chief
Executive Officer
|
|
|