E-mail from Paul Henry.......
Dear Suzanne,
I have just spoken to our securities counsel about the subject of proper
interim disclosures to shareholders regarding how much of the convertible
debentures remain to be converted.
His response, predictable for a securities lawyer, was as follows. First,
he stated that if the SEC wanted disclosures more often than quarterly, they
would require such disclosures more often. Second, he felt uncomfortable
with us selectively disclosing such information to a limited group of
shareholders (such as those on the S.I. thread) rather than disclosing such
information to all shareholders simultaneously through a press release or
interim report on Form 8-K (and we obviously do not want to get into making
weekly reports about this).
I can tell you that the amount remaining to be converted is substantially
less than the $1.15 million that was unconverted as of June 30, 1999. Also,
some of the remaining debenture holders are long-term supporters of the
company, and are therefore not inclined to convert and sell in a way that
would be harmful to the company. Other than that, I can only say that we
will continue to inform shareholders about such conversions when we feel it
is appropriate to do so, as for example when all the debentures have been
converted.
Finally, as you and many other shareholders know, we are currently working
on an equity private placement for restricted stock at a fixed price above
the current market price. At such time as a private placement has been
completed, we will notify all shareholders through a press release and/or a
Form 8-K. Once we have the necessary financing in place, I believe that
shareholders will be less concerned about the remaining unconverted
debentures.
If you have further questions, please write or call me again. As always, we
appreciate your support.
Paul Henry
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TSIG.com email: PHenry@tsig.com
100 Second Avenue South tel: 727.897.4036
St. Petersburg, FL 33701 fax: 727.897.4029
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