Basically, ADTX is an empty corporation with a huge cash hoard looking
for a merger candidate. Fully reporting with SEC.
The Financial Stats
- 5.4 million shares outstanding.
- Management owns 3/4 of this amount.
- Free trading around 1.3 million shares.
- Cash as of March 31, 199 - $878K
- Total assets - $1,068,163
- Total liabilities - $203,000
- Book value - .165 - around .16 in cash.
- No legal proceedings.
Important: Effective June 15, 1999, the company entered into a consulting
agreement with G-V Capital Corp., a New York based investment banking firm, to
assist the company in introducing potential business opportunities, including
possible acquisition of operating businesses by the company. The agreement will
continue until December 31, 1999 and is automatically renewed for three month
periods thereafter, but may be terminated by either party on 30 days’
notice.
We have owned this situation for 1 1/2 years and mentioned it in our
newsletter during that time period. During our 16 year history of writing SA
ADVISORY, we have played numerous corporate shells and have profited
handsomely; i.e., Global Spill (GEGI) - we recommended 8-20-97 @ .375 and
proceeded to sell partial positions in this situation as high as $5.00 (new
name of GEGI=BIOF). As you can see the potential can be HUGE!
We cannot guarantee similar results, but the intriguing thing about
corporate shells is that if the right deal comes along, the sky is the limit!
During the period of time that we have held this stock, this is the first
time that the company has shown serious interest in finding a deal for this
entity. On August 29th we released an E-mail message containing ADTX - current
price around .15. We would not sell the farm, but owning a small position may
turn into a handsome winfall.
Broker contact: Mike Chesler @ 1-800-890-1629; Corporate # 718-899-6100.
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