As the spinoff bubble continues to inflate, we come across deals that are more and more ridiculous. Today, we bring you Infrax Systems(IFXY), which will soon be spinning off Lockwood Technologies. This dust mite of a company has a market cap of under $500,000, making ArrayIt, last week’s tiniest find, look like a behemoth.
In April 2011, Infrax, which provides “smart grid related products”, purchased 70% of Lockwood technologies. Now, it plans to distribute 1 share of Lockwood for every 3 shares outstanding to owners as of 3/19/12, retaining a 30% stake. This company is too small to be public and certainly too small to execute a spinoff. There are better ways to make money.
Disclosure: The author holds no position in any stock mentioned
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