Arconenergy, Inc. (Long Term Investors and Fundamentals) Message Board

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Gold/Mining/Energy : Arconenergy, Inc. (Long Term Investors and Fundamentals)

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To: Ga Bard who wrote (7)	2/7/1998 9:23:00 PM
From: Ga Bard	Read Replies (4) of 1757

The shares issued for Arcon and New Departure were the perferred B which is not traded on the market. B stock is 150:1 and is insider shares only held by the directors that told me this weekend with conviction they had no intention of converting those shares. The new share structure will be out in the 8K associate with Arcon coming into Midland. Noe it takes the board to aprove the conversion then there are restriction on the time for sell and time restriction on the amount they can sell. Plus this is fully reporting and they will have to register the sell in compliance with the SEC. Now there was 140K issued in Preferred B for Arcon and 70K for New Departure. The New Departure was returned so we only have 70K that was added which now makes the full dilution 27,600,000. Note: this insider stock with a two year restriction before conversion from date of issue which is insider shares and has to follow the rules of insider trading and registration. Float dilution is a different story ... The 117k in the MIDLP is 35:1 and 54K are in the float of the MIDLP which is all to my knowledge that will convert automatically in Oct. 1998 so 54,000 perferred A x 35 = 1.89M + the 1.1M free trading (2.5M in the float - apprx 1.4 - 1.6 insider making the free trading float appr. 900K - 1.1M) thus making the float in Oct 1998 to 3 M. I did a post of full dilution at 17.1M after New Departure acqusition. 70K x 150 = 10.5M + previous dilution of 17.1 makes Full dilution 27.5M fully diluted. Again the float in Oct 98 when the 54K P converts only takes the float to 3M. With a 3.6 Billion coming onto their balance sheet I do not see a problem personally. The rest of the Perferred A converts in Oct. 1999 unless the structure is change in the next 8K which will be discussed at February shareholder meeting to be announced along with the ticker change. Hope this answers your question. Call the company for calrification as I do if you do not agree. Happy Trading GB

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