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Technology Stocks : SYQUEST

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To: Triluminary who wrote (4457)10/19/1997 1:10:00 AM
From: Cogito   of 7685
 
>>Point is they aren't spending $35 million. The shareholders are the ones footing the bill...

In an unusual arrangement, the firm is being compensated almost entirely in warrants that can be converted to stock. Silakhan officials said they stand to earn "seven figures" or "nothing" depending on the success of their efforts. <<

Mark -

I believe that the 35 million that SyQuest will be spending is for the TV and Radio spots, as well as the print ads. The marketing firm which is producing the ads is being compensated in warrants, but placing the ads will still cost real money. TV time is not free, and the ad agency won't be paying for it.

- Allen
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