TO ALL: Form S-3 filed 11-12-97.
The Common Stock is traded on NASDAQ under the symbol "NHTC." On November 6, 1997, the closing bid price per share, as reported by NASDAQ was $.0625. In the event that the Common Stock is delisted from NASDAQ, an investor may find it more difficult to dispose of, or to obtain accurate quotations as to the market value of, the Common Stock. See "RISK FACTORS -Possible Delisting of Common Stock on NASDAQ; Possible Adverse Effect on Trading Market."
*The shares of Common Stock offered hereby include the resale of such presently indeterminate number of shares of Common Stock as shall be issued in respect of all shares of Common Stock issuable upon (i) conversion of, or as dividends on, 2,200 shares of the Series
A Preferred Stock having a face amount of $2,200,000 issued in a private placement in June 1997 and (ii) the payment of a 2.5%-per-month penalty payable in shares of Common Stock at the option of the holder of Series A Preferred Stock pursuant to a Registration Rights Agreement, between the Company and such holder. The number of shares of Common Stock indicated to be issuable in connection with such transactions and offered for resale hereby is an estimate determined in accordance with a formula based on the market prices of the Common Stock, as described in this Prospectus, and is subject to adjustment and could be materially less or more than such estimated amount depending upon factors which cannot be predicated by Company at this time. If, however, all 2,200 shares of Series A Preferred Stock and the dividends thereon were converted , the Company would be obligated to issue a total of approximately 54,126,000 shares of Common Stock. This presentation is not intended to constitute a prediction as to the future market price of the Common Stock or as to the number of shares of Common Stock into which the shares of Series A Preferred Stock will be converted. See "RISK FACTORS - Effect of Conversion of the Debentures and Series A Preferred Stock."
Guess you all know what this means.
Jim |
