Golden Elephant Glas Tch (GOEG)

Key financial targets with regards to a recent private placement transaction:

In connection with a recent private placement transaction, management entered into a 'make good agreement' and has placed 1.7 ‌million of its shares into escrow to secure its obligations to meet specific Net Income targets for 2008and 2009. If the targets are not achieved, the shares  will be transferred to the investors involved in the private placement.

Net Income targets:

1.   $10 million in adjusted net income for 2008. (This would imply Earnings Per Share of .37) 

2.   $14 million in after-tax net income for 2009 (This would imply Earnings Per Share of .52) 


GeoTeam Note:   We are assuming that these targets assume the 2007  tax rate of 7.7% 

Net Income targets adjusted for a fully taxed situation:

1.    $7.2 millionin adjusted net income for 2008. (This would imply Earnings Per Share of.‌27) 

2.   $10 million in after-tax net income for 2009. (This would imply Earnings Per Share of .37) 

Source: Business Wire (July 25, 2008)