Great stuff from Townhall.
THis company is definitely going places and now we have stock in 2 Great growth oppts.
QUESTION:
1. Audited Financials Earlier Garr mentioned that Esprit might publish audited financials for year-end 2006 depending on how the deals in China went. Now that the merger will go through can you please tell us what your plans are for the new combined company to publish audited financials for the end of the year?
RESPONSE:
As a fully reporting company, and with a growing base of investors, we anticipate that the year end statements will be audited. We will need to ensure that the Good Life financials reflect international accounting standards, although they are not required to follow U.S GAAP (Generally Accepted Acounting Principles). QUESTION:
2. Post-merger selling of shares. Will the new company be selling shares for financing or any other reason in 2008 after the merger? RESPONSE:
The Company has negotiated a commitment for a regulation D offering to raise an initial $5 million to fund expansion. The terms are still being finalized, and will be disclosed upon signing of all of the paper work.
QUESTION: 3. EFGO buyback of GoodLife shares. In response to the earlier Town Hall question “Will Goodlife be buying back shares showing there faith in the new merger?” you responded with “Post-acquisition, EFGO plans to sell off other remaining non-core assets. Plans call for the proceeds received in these subsequent transactions by EFGO to be utilized to buy back shares.”
RESPONSE:
The intent is to use proceeds that are generated by EFGO to buy back EFGO shares
QUESTION:If EFGO and GoodLife will be separate companies how can EFGO buyback shares for GoodLife? Do you mean that EFGO will buy GoodLife shares and hold them for a period of time?
RESPONSE:
Actually, EFGO will buy back shares of EFGO with proceeds from the sales.
Permalink Comments
Value of mergerPosted in Uncategorized at 3:39 am by Bigdogs
QUESTION:
Can you please help shareholders realize what the current market cap is of Goodlife?
RESPONSE:
The market cap is determined by the total number of shares outstanding multiplied by the price per share, and is thus determined by the investment community. We can noted that Good Life has a current run rate in excess of $100 million USD, and business plans for 2007 called for a net income of $2.29 million USD. We are advised that the Company is ahead of plan, and we will provide updates as they are received. It is reasonable to speculate that the current share prices of EFGO have not yet reflected the incremental value associated with Good Life.QUESTION:
Also can you attach a PE to it with the growth rates that Goodlife is doing right now and give us a good idea what this might open at with regards to market cap?RESPONSE:
That is another tough question. A typical multipe of a mid-pack, stable company is often in the 15 range. When you consider the growth rate of Good Life, looking to move from 1,600 to 4,000 locations by 2008, (on a franchise basis which limits company exposure to undue risk), and agressive plans to expand its portfolio of products, we would not be surprised to see a multiple much higher than that.QUESTION:
Also how do the preferred shares that Garr holds play out in the merger?RESPONSE:
There are no direct affects on either the common or preferred shares stemming from the uplisting process itself. Certainly the recapitlization required for the Fully Trading pink sheet company will not see any shareholders receiving a 1:1 exchange of shares, which would exceed the authorized capital of the new Company with which we are being acquired.QUESTION:
What is the process to determine the opening price of Goodlife with the new name change?RESPONSE:
Unfortunately, it is premature to speculate. The opening price will be determined in conjunction with our financial consultants, and may reflect changes changes in the valuation of shares leading up to the actual name change and new ticker symbol. We certainly hope that it will reflect a significant increase in value given Good Life’s tremendous growth rates and financial success to date.QUESTION:
Whats the goal of keeping EFGO and the current sharestructure.? Is it to add more assets to it in the future and sell it off at some point or what?RESPONSE:
Announcements regarding this point will be forthcoming as early as tomorrow. Please look for more updates and press releases this week, which promises to be quite exciting.
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