Francios makes Stockdetective, a high honor indeed
Oh, did we mention that one of the investors in the private placement (120,000 shares) apparently is one of ZiaSun's biggest fans and an investor in that company as well?
financialweb.com
Xin Net Corp. (OTC BB: XNET) is the latest company laying claim to China's allegedly vast, untapped pool of Internet users. Xin Net and its subsidiaries say they will offer TV set-top Internet access as well as online content.
Xin Net, based in Vancouver, B.C., says its operating arm in China, Xin Hai, has licenses to provide Internet access in 10 major Chinese cities, which combined give the company access to less than 10 percent of China's population.
Xin Net also is up against some well-heeled competition. Earlier this month, China.com went public and raised $84 million, giving it probably the deepest pockets of all the China ISP/Portal site wannabes. Xin Net's bankroll pales in comparison. According to its initial filing with the SEC, the 10SB reveals a struggling company with very little cash or commitments. After two years, Xin Net has a mere 25,000 Internet subscribers. Hardly the stuff Internet empires are made of.
And, prior to a $5.5 million private placement, the company had only a trickle of revenue from operations. And, although the 5.5 million-share offering brought in some much-needed cash, in the long-term it could dilute current shareholders' holdings. According to documents filed with the SEC, investors who bought into the private placement at $1 per unit have dibs on two more shares of Xin Net stock at $2 and $5, respectively.
One curious note on Xin Net's income statement is the inclusion of depreciation and amortization - which typically shows up on the cash flow statement. Inclusion on the income statement inflates Xin Net's bottom line by more than $45,000 through the third quarter of 1998, and a similar amount for fiscal 1997.
Oh, did we mention that one of the investors in the private placement (120,000 shares) apparently is one of ZiaSun's biggest fans and an investor in that company as well?
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