I'll tell you what. If I was being hassled by Masterfile I would look at this transaction VERY closely. There is something _odd_ going on here.
Could you elaborate a little bit about what you are thinking?
I honestly don't know what is going on. I am just suggesting that this is worth watching.
Something just feels off. For one, the financing seems weird. This small company is acquiring this much larger company. In fact their last financial statement says:
The Company reported a net loss for the year ended March 31, 2011 of $3,730,834, a decrease of $641,327 over a net loss of $4,372,161 for fiscal 2010. As at March 31, 2011, the Company had a negative working capital of $1,982,399.
Close to 2 million dollars in the hole and they are BUYING Masterfile? Odd.
I invested in a company a few years ago called Syntax-Brillian. They made affordable LCD panels in the USA. The company was formed by merging a small publicly traded company with a very large private company. The merger made it possible to drive the price of the stock up. Things looked great for the company but within a matter of months several new deals were announced with over-seas companies. Then, suddenly, Syntax-Brillian announced they were filing for bankruptcy protection. The over-seas companies bought the IP from the company at fire sale prices and the investors got nothing.
Now I am NOT saying that is going on here. This is a totally different set of circumstances. First, this is all against the more speculative Canadian Venture market. But I would just watch and see what develops over the long game.
Another thing that seems odd is that Arius3D is touting how they will be the only company to offer 2D images and 3D models. This doesn't make sense. I don't see the advantage. You are either looking to license one or the other and they are not interchangeable.
I also wonder if Arius3D knows they are joining up with a company that threatens customers and potential customers with legal action regardless of the information presented. I see a lot of ill will on the Internet toward Masterfile. And this multimillion dollar deal hinges on Arius3D obtaining funding. "The closing, scheduled for October 31, depends upon Arius3D's ability to raise the financing necessary to complete the sale."
If you read the article at:
http://www.marketwire.com/press-release/arius3d-to-acquire-masterfile-tsx-venture-lzr-1551561.htm you will get even more information about this affair. Seems like both parties really need this deal to go through. And it sounds like Loewen Ondaatje McCutcheon Limited has been tagged to do the initial financing. Is that company aware of the manner in which Masterfile conducts itself?
Look, I'm just throwing a bunch of questions out there. And maybe all this is much to do about nothing. But I'd encourage you to poke around a bit more. You can become a Arius3D shareholder for 9 cents and then you have right to ask any questions you want. They don't have a person in charge of Investor Relations, but if you identify yourself as a shareholder the CEO (John Wood) or Chairman (David Beutel) will more than likely get back to you.
Best of luck.