"Sounds like a bit of a rip-off deal to me, offering $1 per share when they have $22 million in cash...." - Delisting date?
Looksmart - Jun 29, 2012
Do you really expect others who post or, read here to fully understand that?
They "buy" only what they are told, Tex. There are many people who do so, like-wise.
Looksmart (who may well feel they have painted themselves into a corner) have never been in a better position (I feel), than at any time in their entire existence. Although, there's few (that's apart from those who know, Michael), would see it as such and that's understandable.
I mean , who in their right mind would sell stock in a company that has "cash" that amounts to more than the share-price value being offered (?) unless, for their having some unforseen circumstance - thus warranting a/that need to sell?
What company would do so, likewise?
Michael Onghai (who, I have had several contacts from in the past), appears to be heading up this PEEK Investments LLC approach - one that also represents Platinum Management (NYSEARCA:NY) LLC, who have continued to add to their own holdings, and now beneficially own some 1,728,000 shares. (Approximately 9.99% of LookSmart's outstanding common stock). How GREEDY of you Michael, et al.
A previous considered attempt being made (by Sidus?) or, 'whiff of' a 'hostile takeover' (of Looksmart) quickly saw the company enact an anti-takeover device known in governance parlance as a shareholder rights plan, more commonly called a "poison pill," that's designed to be swallowed in the event of a hostile takeover bid. - and the option of a threat of the issuing of shares to all holders, and this was at a value of at around $12.00pps. (Along those lines)
This (today's) announcement may well be on more 'friendlier' terms. And (I feel that) it's lunacy, to say the least. Designed (only) to create fear and concern. To hopefully prize more shares from the hands of fools?
What a Sham!
With Looksmart having recently announced a $1M Share Repurchase Program just WHO was it that 'bought and Sold' in the After Hours, is surely a fair question?
But when you are dealing with 'dumbed-down' frightened lunatics, anything is possible. As there have been far much greater scams that have been 'pulled off', with a reminder of the one - a situation where two planes were so easily 'passed off' as having brought down three buildings, immediately coming to mind.
(On Yahoo) LOOK: At 3:51PM EDT: $0.73 0.01 (-1.35%)
Always, just an own opinion.
Disclosure: Long LOOK