>> ADVC << - great stock!! Looks like Qwest in the early days
Here's the message from the CEO
"There are approx 74 million shares issued and outstanding. Of those there are
about 63 million Reg. 144 restricted, by far the majority of which are two
year restriction as of April 1999 until May 2001. Of the 11 million remaining
5 million shares were issued under the 504D, which are long term holds,
although I have a feeling that a small percentage of those may have been sold
in this weeks accelerated trading. Of the remaining 6 million at least 1.4
million are held by insiders including myself who are not selling any as we
believe we know where the stock value is heading. We also removed approx.
1.2 million shares out of the float from ex directors, for various internal
company reasons. This took place very recently. Some of these 1.2 shares will
trickle back into the float over the next six months. That leaves about 3.4
million shares in the float. My personal estimate is that the recent trading
has provoked the sale of some long term holds, as well as some of the 504D
shares, and that therefore, presently, there are approx. 4.5 to 5 million
shares in the float.
There will be no stock split. There is no reason for it considering the
revenues I am building into the company from telecommunications origination
and termination sales contracts for international long distance traffic.
Personally I do not subscribe to the "stock split" philosophy. To me it is a
weak and inefficient way of attempting to create a higher value stock that
seldom works, and in many ways is self defeating. I have been involved
directly in the Telecom industry since 1987. Reselling of volume minutes is a
business I know very well. Jim Rennie knows it ten times better than I do.
I firmly believe that ACT can achieve a monthly run rate by June 2000 that
annualized will reflect second year earnings in excess of $100 million
annually. I have never purported that our strategy is conventional or timid.
At a multiple of ten time revenues the value of the stock is obvious.
As clearly as I try to explain it there seems to be some confusion as to
where the revenues mentioned in the Press Releases are derived from. All of
the revenues mentioned are from the sale of international and local traffic
transmissions.
ACT has a three fold focus at present.
1. ACT (Australia) P/L - Finalize development and production of
SpectruCell and Spectrum Efficient digital point-to-point Microwave,
as well as LonWorks product range. Develop new technology applications
around core product range, including RF video links for LonWorks
applications, and HD TV high speed transmission techniques using SE
Microwave, and more. Most of this is in process now via ACT efforts,
and others. I have personally worked on the planning and funding of this
project for nearly two years now. All that is happening did not just happen
since June, 1999, as some seem to think. The SE Microwave has had eight
years development and more than 15 million spent. None of this happened
overnight. Enormous planning and research have taken place, and this
meticulous process is ongoing daily.
In my mind at least it does not take a great stretch of the
imagination to perceive that the combination of SpectruCell with SE Digital
Microwave, could be to the communications industry what MSDOS was to
the computer industry. It is a whole new operating system which in many ways
is much needed in the network marketplace.
2. ACT USA. - My highest priority is to get ACT of the OTC BB onto
NASDAQ or AMEX. This is currently occupying the majority of my time. Nothing
is of more importance. ACT must be fully reporting by January 31st, 1999, I
plan to be off of the OTC BB well prior to that date. It does not take a
"brain surgeon"
to realize that the stock shorters are crucifying us at present. I
was able to eliminate one major one yesterday, which is why I believe the
volume dropped.
To complement this effort I am hell-bent on bringing very substantial
revenues into the public company by acquisition and sales of traditional
telecom traffic and routing. We are not acquiring businesses at large
multiples but rather finding ground floor opportunities with contracts in
place that we can acquire majority interests in for stock, and provide
cash for working capital to expand sales.
We are in the process of building a modern high speed low cost
communications network backbone utilizing VOICE IP, ATM, and
Satellite, much like what QUEST did in the early days.
3. ACT USA. The network structure has a dual purpose. Apart from
helping to create revenue stream, as it develops it will provide the
perfect platform for us to demonstrate the SpectruCell and SE Digital
Microwave.
In regard to your question about further dilution I would respond that any
dilution will be minor. The $5 million dollars new funding will create 4
million to a maximum of 7.5 million new free trading shares, I believe it
will be in the 4-5 million range. I am actively and aggressively pursuing
acquisitions to bring rapid new revenues. Any dilution under these
circumstance would be more than countered by the added value to the stock. I
have no knowledge or expectation of a large dilution of any nature.
I do however believe that ACT would be better served with a larger number of
shares in the float.
I have never discussed revenues from SpectruCell. However, any one with any
understanding of the enormous applications of this system would have to
understand that capturing less than 5% market share of existing and new
network sales alone
would reflect sales in the multiple billions of dollars.
I hope this information is helpful to you. Thank you for your interest.
Roger May" |
