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Gold/Mining/Energy : Siskon Gold Corp (SISK)

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To: Bill Hyres who wrote (13)	2/12/1997 10:24:00 AM
From: Bill Hyres	of 146

All, Historically in the past when a company commits to the Reg S for money they tend to create a problem for the share value. IMO. Many times the debenture can be converted to common shares in a very SHORT time causing some dilution for a short time until the conversion process is over. In the 10Q it is mentioned for the first debenture that if the share price drops below $1.00 per share the note could be redeemed at 133% of value instead of 8%. IMO Then again after 1/25/97 if the value is still under $1.00 then the note could be redeemed at 142% of value. The agreement was that the note could be redeemed in quarterly segments on the following dates. 11/27/96, 12/15/96, 1/4/97, 1/24/97. On 10/17/97 this first convertible was initiated for $1,150,000. The hi-lo for that day was 1.94-1.88. On 12/13/96 the hi-lo was .97-.88. This was the first closing below $1.00 and ever since a decline in price has occurred. If I now wanted to convert this loan I would be getting a return of 133% and if I wait a little longer I will get 142%. IMO Remember that the loan is converted to common shares and then what do you do? You can hold or sell in the open market. If that many shares drops into the market you may see a drop in value as dilution occurs. Remember this was 1 of 2 convertible debentures that was done in the last part of 96. The other one was for around $2,000,000. Now earning projections for 97 are profitable! Siskon may pull this out and be heroes for 97. This play could turnaround for the benefit of the shareholder. Can management do it? Comments? Theses ideas are based on my limited knowledge. Please evaluate yourself and if there be any readers of a veteran trader background please confirm or deny my reasoning. billybob

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