How does Arcon hope to change the history of bad business dealings associated with the Midland ticker?
The positive business activities of Arcon have completely replaced the business activities of Midland.
Arcon is not a subsidiary of Midland, but is taking it over. The acquisitions coming in are going to be subsidies to Arcon International.
What exact steps does the company plan to take?
We are in the process of changing the name of the company from Midland to our name of Arcon International and getting a new symbol approved, so hopefully Midland can fade off in the sunset.
What is the time frame to complete this takeover?
The shareholders meeting to make that change is scheduled for the first week in March 1998. A filing with the SEC with the new name and ticker symbol will be submitted after that meeting.
Are there any leftover complications from American Coffee Cup?
It has one complication of a $45,000 debt that is owed by American Coffee Cup, which we are currently working to resolve with a $12,000-$15,000 cash settlement.
How many of the old American Coffee Cup directors are still associated with the company?
There is one director on the board, Mr. Wayne Duke who basically came from the New Departure structure from September, but there is no one from the American Coffee Cup side. Mr. Duke will remain on the board for probably one more month and then he will be replaced. With the Arcon directors, there is probably 100 years of experience in the energy industry. With Jim Clark on our board, he took Larcon from roughly $500,000 a year in sales to a billion dollars annually as chairman, doing basically the same thing that we do. John Spriggs was the North American Exploration and Production Manager for Panhandle Eastern and spent 17 years with them. Will McAndrews has roughly 15-20 years in the investment side of the industry, and Dan Fisher has 21 years experience in managing, oil and gas leases and financing. The board of directors right now consists of Mr. Fisher as Chairman, Jim Clark, Robert Fisher, and Wayne Duke, with a couple of high profile industry people that will be brought on to replace Mr. Wayne Duke. There will also be a technical board of four of five that will be brought on which will basically read like a who's who in the industry, with negotiations currently going on in that area. We anticipate making an announcement of those names on or around March 15th.
Will there be a shareholders newsletter that comes out periodically?
Yes. Right now we are planning an update to come out roughly nine times a year, and are thinking of calling it the Arcongram. A shareholder only needs to let us know their fax number or e-mail address, or if they don't have one, we will mail them out. We don't have any intention of becoming news release junkies, but information will be disseminated out on two basic points; when something new occurs, such as a new contract signing on the octane side, and updates on an ongoing project. The nature of the Bob West field fits well within the scope of the latter. If we have something worth saying, we'll say it.
We have signed a five-year contract with Will McAndrews to maintain shareholder communications for Arcon International. He is coming on board as Senior Vice President exclusively for Arcon International. Simply put, Mr. McAndrews has thought enough of the Arcon management to place all of his other activities on hold for the next five years.
Will Arcon use spell checking on its news releases?
The first couple of news releases by Midland on the Arcon reverse merger did have a couple of mistakes on them. Arcon was misspelled by the Texas Business Newswire. We didn't get a copy of the release so we had no control on the misspelling of the name. This is an important issue with many shareholders and we do use spell checking and will continue to use spell checking on all future news releases that originate from Arcon, or any that we have any degree of control over. The second one was a mistake from our office in the urgency and rush to get a release out the day of the reverse merger. The dollars were right, which we were careful and attentive to, but a mistake was made on the bcf (billion cubic feet) of gas reported on the Bob West field which can happen when you think of gas in terms of mmcf and bcf, while dollars are generated per mcf, but rest assured that at least one additional key officer will review all press releases before going out from here. Fortunately for us, the error was to the short side. A correction was made on the third release to address the misstated value.
Is Midland still a holding company?
No.
What about the existing locations throughout the world that Midland owns?
Midland is just a shell. Our due diligence revealed no other holdings or liabilities. The company is now Arcon solely.
What is the time frame for moving to the national listing on the NASDAQ or NYSE?
1998.
How does Midland expect to accomplish this?
By meeting the equity requirements. |
