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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG)

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To: Fred Thornell who wrote (39804)	2/29/2000 9:05:00 PM
From: ztect	Read Replies (2) of 44908

News broken down...... TSIG.com, today announced that it has entered into a letter agreement engaging a prominent New York based investment banking firm as its exclusive agent for a private placement financing of up to $40 million. Deal is UP to $40 mil. Prior PP was for $10 mill of which only $2 mill was taken. $40 mil is a huge amount for a company of tsig's size and current burn rate. Will tsig continue to keep its growth focused? Is this money going to be used for expansion into different product lines? For what period of time is this PP available? The amount seems to provide funding for an extended period of time. If tsig's prior b-plan as currently enacted will lead to profitibility by the 3Q as again optimistically projected by RG, what is such a large amount required for other than expansion? Why would any company invest $40 mill if they didn't thoroughly analyse and believe in the b-model and its ability to grow ie. expand? SEC rules prohibit the company from identifying the investment banking firm. Anyone know the specific rule that prohibits such a disclosure? When Apollo management invested $75 mill in Rare Medium, Apollo's name was disclosed. I can think of other similar agreements that weren't finalized before the PR was released. With INOW, an agreement was stated and then rescinded. Does the conditional nature of the PP preclude the release of the "prominent New York based investment banking firm" until the terms are finalized? If a prominent name were mentioned and the deal not consumated, could tsig be held accountable for associated its name with such a "prominent firm" to fraudulantly pump the stock price? Everyone should note the favorable impact that Apollo's $75 mill had on Rare medium's stock price. It is contemplated that the proposed private placement would be for a common stock equity line of credit. Not preferred stock. Not a convertible debenture. But common stock. At a premium? At a discount? At what discount? The securities will not be registered under the Securities Act No registration statement for shares? Are these existing shares? Anyone explain this? [The securities] may not be offered or sold absent a registration or an applicable exemption from registration Shares have to be registered to be sold unless they are exempt per what provisions? Will this registration happen as quickly as prior registrations? Will these shares have any other restrictions on them or be freely tradable after registration? The investors would have registration rights. Other terms of the offering are unknown at this time. Will terms be spelled out in the 10k or will there be a separate filing to explain the terms? Apparently terms should be much better, but until revealed who really knows how good this arrangement is? Could the "firm" make money on their equity even if the stock price goes down like the prior pp if they get their equity at a discount? ..before this financing can be completed, the company must restructure its existing capitalization by reducing the number of shares of common stock outstanding. What does "restructure" mean? Does this mean anything other than a reverse split to reduce the share count to get the price per share up to get closer to the NASDAQ listing threshhold of $4.00 per share? A NASDAQ listing with the capital investment would be a good thing and lead to investment by funds and institutions. The "prominent firm" may love the idea but dislike the OTC listing and the lack of institutional interest from this OTC listing. Tsig obviously doesn't have the capital for a buy back, nor would a buy back be the best use of funds. Could "restructuring" of existing capitalization to reduce shares also portent a spin off of the My Card component from the teleservice company. If my card were spun off, what- if any- intrinsic value would be left over for the teleservice component? The recent spin off of ELOY from its parent TSCC may or may not be a pertinent example. The prior PR noting the selling of "specific assistive telecom technology and equipment" may or may not signify a different path or direction for the teleservice company which recognized an underserved segment of the population and is congruous with supporting the the mycard division while benifitting directly from the new management's prior connections and expertise carried over from their former company. Anyway these are just some thoughts for discussion. z (spellin' not checked)

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