Here are the Q&As from our Trip.
If you have any further questions reguarding this Q&A, please give Brad a call. He does have a copy of this post.
Share Related Issues
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Q: How is the Attorney compensated, is the same attorney handling both issues regarding the stock?
A: Payment in Cash. No stocks, not dependent on outcome.
Q: What is the financial strength of the "entities" that currently hold the stock in question?
A: "Collectable."
Q: What does EUTO plan on doing with any shares regained?
A: Retire them.
Q: Does EUTO plan on giving some of it's FMHG shares to the owners of the "Collateral" shares that may have been sold to the public even though they were not supposed to be traded?
A: Anyone holding Eutro Shares as of the date of record (Jan 30) will recieve shares per the press release.
Q: Does EUTO plan on getting a new TA closer to home?
A: Yes, no time table given. EUTO will use a new TA for all new stocks like FMHG from now on.
Q: What is status of preferred shares exchange?
A: Almost complete.
Q: How many shares have been retired?
A: 26 Million when complete. Qualification: Not all may be retired as of today. TA #s are Eutro's official answer.
Current Operations
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Q: What is current income vs prior period?
A: Better
Q: What steps/procedures are being used to attract new business?
A: Word of mouth - new board members, company officers, share holders, current companies.
Q: How many deals have you set goals for in 1998?
A: Six
Q: Pending News?
A: No Comment.
Bio Medical
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Q: Have sales grown or declined in the past 3 years?
A: Yes they have grown.
Q: Any new products on the horizon?
A: Yes
Q: Are they making money, if so how much, if not how much?
A: Breaking Even
Q: If they are not profitable, do they reasonably expect to make a profit in 1998?
A: Yes
Q: If not profitable, will they be shut down or sold, and what is the expected loss for 1998?
A: They will not be shut down for reasons stated in previous answers.
General Questions about Bringing Other Companies Public
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Since what they are doing is a company "Trade Secret", they didn't want to say much about the process of bringing companies public.
They thought that if it became public knowledge, it might would hurt their business prospects in future.
Q: What type of company is EUTO interested in bringing public? ie: Product Line/Service? Capitalization? Location?
A: Any expanding company with growth opertunities. Variety of product lines/services is best for diversification.
Q: What kind of competition does EUTO have in bringing companies public?
A: There are many competitors in "Investment Banking"
Q: Does EUTO plan on giving shares to common stock holders for all future companies you bring public?
A: At this time, it looks as though shareholders will recieve shares in each future company but it does depend on each deal. Giving shares to existing shareholders helps give new companies exposure/initial interst in their stock by creating an instant shareholder base of around 1200 investors. It also makes Eutro Stock more valuable because Eutro Assets will increase.
Q: Do prefered shareholders receive a larger dividend when you take into account the 50:1 exchange rate?
A: No. Same "value" of shares. However they include preferred shares benefits such as dividends.
Q: New Deals coming up? How many, how big? Time frames for new deals?
A: No comment - Insider Information
Freedom Medical
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Q: How long has Freedom been in business?
A: Since 1992
Q: Why did Freedom decide to go public?
A: Needs capital to expand existing services.
Q: Did Freedom make a profit last year?
A: Yes
Q: When will Freedom be trading and on what exchange?
A: Not Known. Probably on BB exchange.
Q: When will we receive FMGH shares and when will we be able to trade them? Ie what are restrictions?
A: Barring any unforseen problems, we anticipate by the end of February. They will be distributed in Cert form and will be restricted from trading for 1 year.
My comment: Since the shares are restricted for 1 year, I don't think day traders will buy in and sell just for a quick dividend.
Q: Does Freedom plan on releasing financial information? Will the be audited or unaudited?
A: Unknown. It will be up to Freedom.
Q: Are any of the shares EUTO received restricted in any way?
A: Same as above.
Q: How many shares are owned by insiders? Are they restricted? When do they expire?
A: 2.1 Million. Yes. 1 Year.
General Questions:
==================
Q: What has been the initial impact of the newsletter on shareholders that are not tuned into the Internet?
A: Very Positive.
Q: It seems like internet communications has huge impact on price both in the September run ups, and recent plunges. Do you agree with this?
A: That would be speculation.
Q: How do you plan on addressing this in future? A company Website? E-mail Listing for News releases?
A: Eutro is planning a website that we hope will be up and running by the end of February.
Q: Do you care to give a planned date for next newsletter?
A: Late March.
Q: In the future are tighter agreements going to be drawn up when shares are involved?
A: We have no plans for any future agreements like the one referred to. Previous management was responsible for those agreements which we are dealing with now.
Q: Why were these issues never clarified earlier involving the 50 million and/or the unpaid share issue?
A: Current Management was not aware of the problem until last fall and it took time to uncover what previous management did.
Q: What steps is Eutro taking to become a reporting company.
A: Eutro is being proactive in finding out about the proposed NASDAQ BB reporting regulations but nothing has been determined at this point.
Q: Is there any information regarding the reporting requirement to remain tradable (on BB)?
A: None yet.
Q: What is the status of your current lease, any options, do you plan on staying?
A: One year left on current lease. Eutro has no plans to leave the Jupiter area. Whether or not we stay in existing building will be business decision TBD.
Q: Why did EUTRO become a public company?
A: To become an Investment Banking Firm and to offer better services to new companies.
My editorial: Having a broad base of current shareholders somehow makes it easier to bring companies public. Has something to do with having an existing base of shareholders.
Q: Where do you see EUTRO going in the next 12 months/24 months?
A: Become a strong competitor as an Investment Banking Business.
Q: What do you believe the stock price to do?
A: No comment...involves speculation.
Q: Stocks overall in the last qtr of 1997 (as indicated by the declining Dow) have only moved down. It appears as though news has little or no effect on the interest in buying a stock and raising the price of the stock. Given this, will EUTRO be able to start providing positive financial news in the next 12 months?
A: Hopefully yes.
Q: Does Eutro have plans to turn over the Investor Relations task over to a regular Investor Relations firm in the near future?
A: No. Although we have hired a P.R. Firm, as seen in one of this year's press releases.
Q: What is in the future regarding the officers/key people of the company?
A: See last Press Release
My comments in no particular order:
*Their office consists of about 3300 sq feet of the second floor in a 4 story office building. It's a pretty nice office.
*Everyone in the office was friendly and professional.
*Eutro plans on becoming an small to medium size "Investment Banking" firm.
*Eutro said that they are very pleased with the amount of companies have been coming to them for help.
*Word of mouth is very strong in this business and Contacts are Everything. That's one of the reasons & benefits of some of the new board members.
*Currently, they use outside sources for certain portions of this process.
*In the future, Eutro will work to bring these some of those processes in-house to improve efficiency and speed at which they can bring a company public.
*Eutro won't comment on what those processes are because they are still working on them at this point.
*Floyd & Brad stress that the shares issue is being worked on diligently and regretts that he can't share any more information due to legal ramifications.
*Floyd & Brad say that a strong shareholder base is very important in the new direction as an Investment Banking firm because it gives their new companies a strong shareholder base which helps everyone.
*Donna - the Comptroller - has been reffered to as a "Bean Counter with an Attitude" by some (no offense if you read this Donna). She is definately the type of person you want running the books.
*Bob was right when he described Floyd as a man with "Fire" in his eyes about the shares issue.
*I personally walked away happy and confident that the shares issue would be resolved.
*Since I plan to hold my shares, I am not worried whether it is 3 weeks or 3 months.
*In the mean time, I will keep getting free shares from companies like Freedom.
*It is possible that the FMHG shares will be considered a "Distribution of Assets".
*In this case, we may not have to pay taxes until we sell those shares.
*At the time of sale, we may be able to use the purchase cost of the Eutro Shares to offset the procedes of the FMHG shares sale.
*This may affect the "cost basis" of your Eutro stock when you sell it though.
*Of course this is all speculation at this point. You need to talk to your accountant for tax advice since it could get complicated if you chose to make it so.
Hope this answers some of your questions.
If you have any specific questions, please contact Brad and he will tell you what he can.
Mike
Disclaimer:
Since I was taking notes and talking at the same time, these questions and statements are not verbatim. I tried to answer them to the best of my recallection in cases where I wasn't able to write fast enough. |
