Dear Joe,
You are "sure" that EXSO has not reported to the SEC that it issued about $7mm in modified
debentures in May,1997. I suggest that you read the Company's S-3/A filed on May 30,1997.
While the new debenture is described throughout the entire document, you can specifically look at
page 10, Recent Developements, which details the new debenture amounts.
You also state that you believe that the original $5mm amount was not properly reported. Just what
do you think was not reported? Take a look at Form S-3 filed on March 11,1997. If you take time to
read through the S-3 and S-3/A, you will see that everything you contend was not reported is reported in detail.
You state that you believe that EXSO incorrectly reported the debentures as paid in capital. Maybe
you should contact the Company's independent auditors who have passed on this very issue. Maybe
you know something that they don't know. Their name, as well as that of their specific auditor, is
contained in both the S-3 and S-3/A.
You furthur believe that the debentures should not be reported as paid in capital because conversion is
not mandatory. Maybe you should read the terms of the debenture, filed with the S-3 on March 11,
1997, which shows that conversion is mandatory. (See Section 3.3).
You state, rather boldly, that the SEC filings are the worst that you have ever seen. If you have read
many 10-K's and 10-Q's, can you say that you've ever seen a company that was more disclosive of
adverse risks than EXSO? Just what do you think is incomplete about the filings?
Just when did you get into this stock, anyway? If you got into the stock before the debentures, you
might have the right to complain. If you got in after the debentures, you bought the stock at a great
price. The price is on the way back up, or at least stabilizing. Haven't you made a profit, or is it just
not big enough to satisfy you yet?
I'm personally tired of people criticizing the current management team and this fine CEO. I
understand that Mr.Connors inherited a big mess and, from what I've seen, has been doing a great job
cleaning it up. I understand that EXSO bought his company in late '95 with $9 stock and that he has
lost about $1mm himself in this deal. Despite that, he walked away from his job running a successful
subsidiary (Eco-Systems), and I'm sure many other opportunities as well, and took over as CEO of
EXSO in an effort to help long-term shareholders who've been burned. He's obviously put a new
business plan in place, which has been detailed in press releases issued by EXSO. Let's give him and
his team a chance.
Just my thoughts
TDL4138 |
