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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Tim J. Flick who wrote (6775)12/3/1997 9:15:00 AM
From: JDN  Read Replies (2) of 31646
 
Dear Tim: This is not an initial capital and I am sorry but I think this is high. As to pay back. We as shareholders will pay back much more in dilution than a standard bank loan drawing say Prime +2%. You may be right from the company's point of view, but from existing shareholder point of view debt financing is always more attractive. I say always because unless the equity situation is inviting it wont attract interest. Its a done deal, and I dont want to belabor the point anymore. I made my feelings know clearly right from the start. At this point I only hope that we got some "partners" that are worth this cost. I reviewed the 8-k filing with the SEC yesterday and neither the PP is filed nor the names of the participants. Cant understand why as this seems important to me. Sooner or later it will come out though. JDN
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