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Technology Stocks : America On-Line: will it survive ...?
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To: Sam who wrote (4951)10/8/1997 10:52:00 AM
From: jack rand   of 13594
 
Similar to situation of N2K, which signed $18m/3 year deal but
has only $1m cash and intends to pay via an IPO which has been
cancelled once. And here note Leonsis perosnal holdings connection
-- explains how PTVL got it's exclusive deal and investment by AOL.

PREVIEW TRAVEL S1 10/03/97

** The Company intends to use a portion of the net proceeds to
pay a portion of its obligations to AOL and Excite pursuant to
the Company's agreements with AOL and Excite...... In particular,
the Company intends to use a portion of the net proceeds of this
offering to make a required $6.4 million prepayment of its
obligations to AOL.

** In September 1997, the Company entered into an agreement with
AOL pursuant to which the Company serves as AOL's primary and
preferred provider of travel services on the AOL Online Area

** Ted Leonsis, director since 1985 (pre-AOL) holds 78,000 shares
acquired pre-AOL.

*** AOL itself holds 15% (12% after IPO) ***

** ...pursuant to its arrangement with AOL, the Company is
obligated to make minimum payments totaling $32 million to AOL,
as well as pay a percentage of commissions earned by the Company
in excess of certain thresholds. Pursuant to its arrangement with
Excite, the Company is obligated to make minimum payments
totaling $24 million to Excite

** As of June 30, 1997, the Company had $1.1 million of cash and
cash equivalents.

** The Company has incurred a net operating loss in each of the
last four years and, as of June 30, 1997, had an accumulated
deficit of approximately $18.7 million.
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