Another “Going Private” Deal – Capitol First Corp

Yesterday, I purchased 1,990 shares of Capitol First Corp (CFRC) for my son’s Coverdell ESA.  Like ASA International, Capitol First Corp is planning to go private.  They plan on conducting a reverse split and cashing out all shareholders with less than 2,000 shares.  Capitol First Corp will pay out $0.18 per pre-split share to all those that are cashed out.
The announcement for this proposed going private transaction was on January 27.  I tried to purchase the shares for $0.10 and then $0.11 with no luck last Friday and Monday.  When I moved my offer up to $0.12 a share yesterday, the transaction finally went though.  It can be rather difficult to purchase shares of these small companies with little trading volume.  I think next time I’m going to make my limit order a bit more generous, so I can take advantage of lower prices shortly after these deals are announced.
I spent $250.75, including commissions, to purchase these shares.  When the shares cash out for $0.18 a share, I plan making $107.45.  I know that this is a pretty small amount of money, but look at the rate I’m getting.  That $107.45 is greater than a 42 percent gain on my original investment.  It is also likely that it will take less than a year for this transaction to be finalized.  Therefore, my annualized rate of return will likely be much higher than 42 percent!

9 thoughts on “Another “Going Private” Deal – Capitol First Corp

  • February 2, 2005 at 3:35 pm

    Not a bad rate of return, but why do they cap it at 2,000? For the simple reason of limiting people from doing what you’re doing?


  • March 18, 2005 at 12:49 am

    I know it’s petty, but why didn’t you buy 1999 shares?

  • March 28, 2005 at 11:15 pm

    I bought 1,990 versus 1,999 because I thought it might be easy for the transaction to be fulfilled that way. I thought it might be easier to trade in at least blocks of ten shares versus single shares. It probably didn’t really make a difference.

  • March 28, 2005 at 11:17 pm


    They capped it at 2,000 shares because they determined that if they eliminated all the shareholders that hold less than 2,000 shares that it would get then below 300 total shareholders. Getting less than 300 shareholders is need to go private. It is not a requirement to limit the buyback, but it saves the company money and allows it to keep its largest shareholders.

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  • April 3, 2008 at 9:02 am

    Does anyone here who is discussing Capitol First Corporation
    know anything of a person named Joe Vick and PetroSource Energy Corporation? Does anyone here know that PetroSource, after defrauding people of millions of dollars, changed its name several times and eventually to Capitol First Corporation? I was one of those defrauded by PetroSource in 1993.

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