Not a bad days work if he turns right around and dumps them. Tidy little profit. We all knew or should have known this was coming. It was in the last Edgar filing what APPI was paying for this new product line. We have no cash, hence we pay in more stock, further diluting the shares. Look for a reverse split after increase in outstanding shares. Nice little deal for Madison financial also.
On February 17, 2000 we entered into an agreement with First Madison Securities, Inc. ("FMS") whereby FMS agreed to act as our consultant and non-exclusive financial advisor in connection with strategic planning, securities transactions, valuations and mergers and acquisitions. FMS may also act as our placement agent for capital raising transactions. As compensation for these services, we are required to issue to FMS 6,000,000 restricted shares of our common stock within six months from the signing of such agreement. We will also pay FMS a placement fee for any transactions consummated, directly or indirectly, through FMS during the term of the agreement or within two years thereafter. The placement fee will consist of payment equal to 10% of the gross proceeds raised from the sale of securities, reimbursed non-accountable expenses equal to 3% of the gross proceeds from the sale of any securities and warrants to purchase common stock equal to 10% of the shares sold.
We have no say in the matter of increased shares. If we all voted no, they would still control the biggest block of stock. Bend over, here she comes and no lube. |
