Here are some other interesting snippets:
As of May 15, 1999, we had approximately $4,950,000 in cash, and we will, on average, expend approximately $400,000 per month. While we anticipate raising additional capital through private placements of our common stock, we cannot assure you that we will be able to obtain adequate financing to support our operations. Even if we are unable to raise additional capital, we believe that we will have sufficient funds to commence and conduct our operations for at least the next 12 months, without considering any revenues generated from the operations of our subsidiaries.
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We May be Required to Sell Additional Common Stock or Parties May Exercise Options and Warrants that Cause Dilution of Your Shares
The number of shares of our outstanding Common Stock held by non-affiliates is large relative to the trading volume of the Common Stock. Any substantial sale of our Common Stock or even the possibility of such sales occurring may have an adverse effect on the market price of the Common Stock.
As of May 31, 1999, we had outstanding warrants to purchase an aggregate of 916,668 shares of Common Stock.
We have also reserved up to an additional 1,145,000 shares of Common Stock for issuance upon exercise of options which have not yet been granted under a stock option plan, which we intend to approve and adopt. Holders of such warrants and options are likely to exercise them when, in all likelihood, we could obtain additional capital on terms more favorable than those provided by the options and warrants. Further, while our warrants and options are outstanding, our ability to obtain additional financing on favorable terms may be adversely affected.
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On June 3, 1999, the last reported sales price of our common stock, as reported by the NASD was $3.93. As of May 15, 1999, there were 76 holders of record of our common stock.
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We have also agreed to issue 250,000 shares of our common stock to Stratford as consideration for services related to the first phase of the development of the Bingo.com (Canada) portal. We anticipate we will finalize a definitive agreement with Stratford in June 1999 and issue the shares at closing.
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