Reston, Virginia modem supplier Fastcomm Communications Corp has revealed sketchy plans to spin off a new subsidiary business development company that it says will attempt to take advantage of undetermined business opportunities, including merger or acquisitions with an established company. Fastcomm plans to sell approximately 60% of the new company’s shares, in the form of a distribution to the company’s public shareholders. Each public shareholder of Fastcomm will receive one unit of a securities issue of the new subsidiary for each share beneficially owned on the record date. Each unit will consist of half a share of the subsidiary company’s common stock and one common stock purchase warrant, exercisable at $0.75 per share. Public shareholders will end up with about 60% of the subsidiary company’s outstanding common shares upon distribution of the units and prior to the exercise of any of the warrants. In a somewhat cloudy statement, the company also gives no dates as to when the business development will proceed.
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