Aamaxan Trans Group (AAXT) research, news, and more from GeoInvesting

Company description

Wed, 04 Jun 2008 04:00:00 GMT

Company was formed via a reverse merger transaction.

Shanghai Medical will be the new name of the company.

Shanghai Medical is a leading provider of Hemodialysis and renal care equipment, supplies, and related support services in Eastern China. Specifically, Shanghai Medical distributes and sells Hemodialysis equipment ('HDE') which includes the HD 4008B machine and CRRT machine, and disposable and diagnostic products used in Hemodialysis, including the F6HPS disposable, throughout the People's Republic of China.

Research

Mon, 09 Jun 2008 04:00:00 GMT

The Stock seems that it may meet the requirements to qualify as a GeoBargain. The GeoTeam will provide an update as soon as possible. The GeoTeam owns shares in AAXT.

Financial Target Agreements

Wed, 04 Jun 2008 04:00:00 GMT

Key financial targets with regards to the reverse merger transaction:

In connection with the Share Exchange Agreement, management entered into a 'make good agreement' and has placed 4.0 million of its shares into an escrow to secure its obligations to meet specific 'Earnings per Share' targets for 2007 and 2008. If the targets are not achieved, a number of shares derived from a formula will be transferred pro-rata to the investors in the private placement.

Earnings targets:

(a) In 2007, earnings per share, as computed in accordance with US GAAP equal or exceed $0.31. Earnings Per Share is to be calculated by dividing the lesser of Net Income and Cash from Operations, plus any amounts that may have been recorded as charges or liabilities on the 2007 financial statements that meet certain defined characteristics.

(b) In 2008, earnings per share equal or exceed $0.45. Earnings Per Share to be calculated by dividing the lesser of Net Income and Cash from Operations, plus any amounts that may have been recorded as charges or liabilities on the 2008 financial statements that meet certain defined characteristics.

GeoTeam Note: We are assuming that these targets assume the 2007 tax rate of 28%.

Source: 8K April 21 2008

GeoSpecial Notes

Tue, 03 Jun 2008 04:00:00 GMT

AAXT is an illiquid stock as the Reverse Merger Shares are still not effective.

Share Structure

Mon, 02 Jun 2008 04:00:00 GMT

Assuming a conversion of the convertible preferred shares, the company has 20.0 million shares outstanding post the merger and capital raise exclusive of the warrants