Lynch Interactive provided an update on their going private transaction today in a press release. As you might recall, I purchased 85 shares of Lynch Interactive in my son’s Coverdell Education Savings Account on October 10th. The relevant section of the press release is reproduced below:
— Going to the Pink Sheets – On November 3, 2005 the Company’s Board of Directors approved an amendment, effective November 10, to the company’s Restated Certificate of Incorporation to affect a one-for-one hundred reverse stock split which was approved by the stockholders at our annual meeting on October 31, 2005. Its effect will be to reduce the number of shareholders of record below 300 so that the company may deregister its shares under the Securities Exchange Act of 1934, thus “going dark.” As part of this process we plan to delist from the American Stock Exchange. The consideration for holders of less than one hundred shares of stock will be $29.9352, which was the greater of $29 per share or 120% of the average closing prices over the twenty days on which shares were traded immediately prior to the effective date. Such an action will save us the considerable public company costs including audit fees and other fees related to the Sarbanes-Oxley Act. At the same time, we are committed to providing shareholders quarterly and annual financial information and press releases. Our post split shares are currently trading on the Pink Sheets under the symbol “LICT”.
The above means I was able to take a $2,191.45 investment that I made last month and turn it into $2,544.49, which I should receive in the next few weeks. That makes my profit for this transaction a nice $353.04, which is a 16% gain on my original investment. When I receive the cash for this deal, I’ll let you know what the amazing annualized return on this investment actually ended up being.
There are several other similar opportunities that are currently available. You can learn about these deals by reviewing the current going private transactions list maintained in Fat Pitch Financial’s Contributor’s Corner. Consider supporting Fat Pitch Financials, and as a side benefit you could help yourself make some money!