[Lotus99]

Didn't read this in here... And a Canadian company's buying them, to boot!

http://www.cfrb.com/news/13/910492

Canfe Ventures moves ahead on plan to acquire Dinan Engineering
Mon, 2009-04-13 15:13.
By: THE CANADIAN PRESS

VANCOUVER, B.C. - Canfe Ventures Ltd. (TSXV:FEY.P) says it now has a definitive agreement to acquire Dinan Engineering, Inc. of Morgan Hill, Calif., which specializes in products and services for BMW automobiles.

Canfe is a capital pool company under the rules of the TSX Venture Exchange and the proposed transaction will provide it with an operating business that qualify it to list its shares as a Tier 1 company.

Under a letter of agreement announced in January, Canfe will acquire all the issued and outstanding shares of Dinan in exchange for about 54.6 million common shares of Canfe.

In conjunction with agreement between the two companies, Canfe will attempt to sell an undetermined number of equity units at 30 cents per unit for a total of $3 million to $4 million.


Wonder how things might change there, good or bad, and with Dinan's relationship with BMW b/c of this...

[Ilma]

Well I got this email from Steve Dinan just the other day.

I think he is acquiring capital in order to be able to purchase stock BMW's and then sell them in complete modified format via his dealer network.

However, he has to foot the entire cost of holding these cars as inventory - hence the need for some equity cashflow.

Previously, the customer would buy the car first, and then pay the dealer for Dinan upgrades, so there was no upfront investment required by Dinan.

BTW when I spoke to him, he professed that he has no official relationship with BMW and always regretted that they did not buy his company.

He Does have business relationships with the BMW dealer network though.



Here is the emai:

Dear Don,

Lots of exciting things are happening at Dinan in 2009. We launched a complete product line on the 135i in February and expect to launch the new 500+hp engine for the M3 in June. It is such a great car, we anticipate rave reviews from the press on it.

It’s been a few months since we met. After arm wrestling financial market conditions over the last couple of months, positive signs in the market have prompted us to move ahead with our plans. Dinan is finally going public! I’ve attached the news release announcement for further information.

We’re going on the road again! We’ll be in Toronto, Calgary, Edmonton and Vancouver. The investor presentation itinerary is below. Please RSVP to rsvpdinan@paradox-strategy.com and let us know which presentation you can attend.

Hope to see you there!

Best wishes,
Steve

Steve Dinan
CEO, Dinan Engineering

Click here to watch the Dinan video


.................................................. ................................................ ................... .................................................. .........


DINAN INVESTOR PRESENTATIONS

Space is limited, please RSVP by responding to this email (rsvpdinan@paradox-strategy.com). Please make sure to include which
presentation you plan to attend.

Toronto, ON
Monday April 20th
5pm
Canaccord Capital Corp.
BCE Place, 161 Bay St.
29th Floor Boardroom
Toronto, ON




If you have any questions please do not hesitate to contact Nova Cogswell at 778 331-2027 ext. 2027

[Slidewayz]

Maybe we'll be thrust into a parallel universe where Dinan stuff isn't so expensive it's a bad joke in poor taste.

[TwinTurboXI]

I would think a company of Dinans size, (not huge but large by some standards) would take out a loan of sorts to pay for the cars in their inventory. Similar to what car dealers refer to as the "floorplan".

With the news that Dinan was sold, I think it would be safe to assume they were having financial problems.

[Septro]

We need more info but I'd be inclined that with the downturn in the economy that has hit the car market - DINAN has to be feeling it pretty hard with less foot traffic for aftermarket parts/services.

I think this is plan to expand the capital base but he who holds the purse strings, holds the keys so we won't know the impact to the DINAN-dealer strategy until they say something.

But I wouldn't go fretting about the DINAN warranty, short of bankruptcy - they are still bound by the agreement as a warrantor.

[dmurray14]

Originally Posted by Ilma

Well I got this email from Steve Dinan just the other day.

I think he is acquiring capital in order to be able to purchase stock BMW's and then sell them in complete modified format via his dealer network.

However, he has to foot the entire cost of holding these cars as inventory - hence the need for some equity cashflow.

Previously, the customer would buy the car first, and then pay the dealer for Dinan upgrades, so there was no upfront investment required by Dinan.

BTW when I spoke to him, he professed that he has no official relationship with BMW and always regretted that they did not buy his company.

He Does have business relationships with the BMW dealer network though.

If that the case, it sounds like a reverse merger.