In a post last month ("Penny Ante Arbitrage") I mentioned that I bought 749 shares each of Asure Software, Inc. (Nasdaq: ASUR) in several different accounts at an average price of 18 cents per share, in the hopes of getting them cashed out at 36 cents per share, as part of Asure's proposed plan to take itself private.
Today Asure announced its financial results for its 2009 fiscal second quarter. The two salient points for our purposes are these:
- The CEO says the plan to take the company private is on track:
"Our plans for going private remain on track, with our preliminary proxy filing currently under standard review by the SEC."
- Based on the updated balance sheet and burn rate numbers, it looks like the company will still have more than enough cash to buy out fractional shares at 36 cents each, assuming the reverse split happens within the next two quarters. As of January 31st, the company had $9,056,000 in cash + $3,074,000 in short term investments + $1,528,000 in net receivables - $7,226,000 in total liabilities = $6,432,000. The company had a net loss in the last quarter of $1,539,000. Assuming another two quarters of similar losses before the reverse split would leave the company with about $3.4 million in cash. Assuming the number of shareholders is the about the same as reported in the last 10-K, the maximum amount it should cost the company to cash out fractional shares is about $2.7 million.
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