To: Ronald P. Margraf Sr. (2691 )
From: DaiTN Wednesday, Jun 16 1999 9:13AM ET
Reply # of 2717
Hi Ron,
Now to answer your questions:
1) You are correct. BETT is not buying back the company stock. ET&T is the one who buy the 2 million shares.
2) ET&T is currently holding 7,685,000 shares of BETT, which make ET&T a majority shareholder with approximately 52% ownership in BETT. If ET&T will buy an additional 2 million shares of BETT on the open market, that will increase the total holdings of ET&T to 9,685,000 shares total. Keep in mind that BETT currently has 14,500,000 shares outstanding. With the 10 million shares offering, and 900,000 S-8 shares that will issued to pay for consulting services, the total outstanding will be approximately 25,400,000 shares total. That will bring ET&T ownership in BETT to 38% in the future.
To be exact, Tom also has 1,000,000 shares of BETT on his own; therefore, together ET&T and Tom own 42% of BETT (9,685,000+1,000,000 divide by 25,400,000).
3) You said:< adding 2 M shares on top of 52% that ET&T already owns, as shareholders, we are left out in the cold>
For every 100 dollars that BETT makes, assuming you own 1% of BETT stock, you will get 1/100 of the profit. Whether ET&T owns 52% or 60% of BETT, your profit is still 1/100 of the total. By buying shares on the open market instead of issuing more shares, ET&T does not dilute your ownership of 1%. No matter who own the shares, your ownership of 1% on BETT does not change.
4) Regarding ET&T being a majority shareholder and trying to control the stock,why would the SEC has a problem with that. Is there a rule saying that no entity or an individual can own more than 50% of a public company?
5) I am not sure if I understand you point about:
<Any price movements could be contributed to insider trading and the stock could be suspended.>
< Myself, I want answers. Real answers. Whats Toms intentions????? I think I know, but this is the wrong solution. Not a good idea if Tom is thinking about moving the stock because he owns it and then throw it out there for more then what it is worth.>
Can you elaborate these issues further!!??
6) Regarding the "conflict of interest" of Tom who is the majority owner (70%) of ET&T and who also control the Board of Directors of BETT, I have raised this issue on my second report from Las Vegas. Tom has given me a reply stating that we will see the positive interconections between ET&T and BETT over the next 30 days. It has been one week, so we just have to wait for 3 more weeks to see what will happen.
7) Regarding <not going to let it rest>. I like that attitude Ron. I think we have something in common here :)
Have a good trading day,
DaiTN
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