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Contributors: Douglas McIntyre Jon C. Ogg

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Wednesday, September 13, 2006

Blank Check IPO Filing: Transforma Acquisition Group

Transforma Acquisition Group Inc. (TAQ-U on AMEX) has made its filing with the SEC for an IPO but the price on this one is already indicated. Transforma is selling 21.562 million units at what it lists as $8.00 per unit. Each unit has an offering price of $8.00 and will consist of one share of our common stock and one warrant (with a $6.00 strike price).

here is how the company describes its plans: Transforma is a blank check company recently formed for the purpose of acquiring one or more assets or control of one or more operating businesses in the technology, media or telecommunications industries through a merger, capital stock exchange, stock purchase, asset acquisition or other similar business combination. We do not have any specific business combination under consideration and we have not, nor has anyone on our behalf, contacted any prospective acquisition candidate or had any discussions, formal or otherwise, with respect to such a transaction or taken any direct or indirect measures to locate specific assets or a specific acquisition target or to consummate a business combination.

The net proceeds to the company after underwriting fees will be $139,500,000,00. Banc of America and CRT Capital Group are listed as the underwriters. This new 18.75 milllion share amount accounts for 80% of the current outstanding shares.

Blank check IPO's have been more popular of late, but they have somewhat of a checkered past. The translation in the past was "We will spend your money how we see fit" but the recent success of Service Acquisition Corp (SVI) for its Jamba Juice acquisition and the last year successful spin-out of DSW (DSW) from retail Ventures (RVI) opened the door to what had been a checkered category of IPO's.

We listed some very brief management highlights from the prospectus, but we have not made any attempt to verify or refute any biography notes.

Larry J. Lenhart, 42; President, Chief Executive Officer and Director

Gordon E. Eubanks, Jr., 59; Chairman of the Board

Jon Lambert, 42; Treasurer and Secretary

Daniel L. Burstein, 53
Samuel L. Schwerin, 34
John Sculley, 67
Dale Kutnick, 56

Mr. Lenhart also serves as Executive-in-Residence at Mohr Davidow Ventures, a leading venture capital firm.

If Mr. Eubanks' name sounds familiar it is because he was the CEO of Symantec from 1984 to 1999.

John Lambert was also listed as the CFO of TIBCO Software from 1994 to 2000 and a prior audit manager from Ernst & Young.

We'll have to keep an entirely neutral stance on this one as there has been essentially no talk out in the public on this company.

Jon C. Ogg
September 13, 2006

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