Just received e-mail from TQT:
>
> As most of you are aware Triquanta has been through a difficult period in the
> past 3 months.
>
> The Company was Cease Traded by the Alberta Securities Commission(ASC) and
> subsequently Suspended from trading by the Alberta Stock Exchange(ASE) for
> failure to file its audited financial statements for the period ended June 30,
> 1997. The failure to file occurred because we could not pay the auditors to
> complete their work.
>
> Over the Christmas period Howell International Inc. was able to re-pay a
> portion of their shareholders loan providing sufficient funds to complete the
> audit. On February 13, 1998 we received a completed audit and today we
> received the interim financial statements for the periods ending September
> 30, 1997 and December 31, 1997. The latter 2 documents must also be filed with
> the ASC and ASE by February 28, 1998.
>
> We are now in a position to file all of our audited and interim financials and
> ask for a revocation of the Cease Trade Order by the ASC and a lifting of the
> Suspension by the ASE. This will be done on Monday February 23, 1998.
>
> Under normal circumstances the Cease Trade order should be revoked within 2 to
> 5 days. The ASC will then advise the ASE of its revocation and subject to a
> satisfactory review of the company's financial status by the ASE the
> suspension from trading will be lifted and trading will resume.
>
> I believe that the ASE will not lift the suspension until Triquanta can show
> that it can meet its obligations to creditors and it has sufficient funds on
> hand to cover its basic overhead for the next 6-12 months. In addition, I
> believe we should have capital to invest, by way of a Shareholders Loan or
> Debenture, in Access Developers, LLC.
>
> In aggregate, the company requires approximately $300,000 CDN or $200,000 USD
> to accomplish the above.
>
> I have approached a number of Brokerage firms and private sources for this
> amount of funding and I can tell you that, at the present time the market for
> Private Placements in development stage companies such as Triquanta, is almost
> non-existent.
>
> The reason for the lack of response would appear to be rooted in the problems
> in the mining and oil & gas industries which traditionally dominate the
> Vancouver and Calgary stock markets. The lack of liquidity in shares of the
> junior mining and oil and gas stocks has lead to a lack of buying power by the
> brokers who would normally be able to quickly and easily place this size of
> funding.
>
> I will continue to work on this area of the market but feel I must discuss
> alternatives with you, the shareholders.
>
> If this funding is not completed in the very near future there will be a
> number of consequences:
>
> 1. The stock will not trade and therefore there will be no liquidity, at any
> price.
> 2. I cannot continue to personally underwrite the costs of telephone, travel,
> couriers, etc. and I am not prepared to continue to incur costs on behalf of
> Triquanta, if I cannot be certain these expenses will be paid.
> 3. If Triquanta is not an active and viable company I cannot continue to
> manage it's affairs, as I must, like the majority of you, earn a living.
> 4. The ultimate result may be that the company's creditors will seize
> Triquanta's
> assets and dispose of them to recover the money they are owed.
>
> None of this need come about, if we, the shareholders, are willing to continue
> to support the company.
>
> With over 1500 shareholders, if each of us was willing to invest an amount
> equal to
> 10-20% of the cost of our original investment in either equity or debt as
> outlined below, the company would be in good financial shape.
>
> The two choices are:
>
> 1. If you are a resident of Alberta you may subscribe to a Private
> Placement
> of the company's shares which will be done at 10 cents per share, these
> shares will
> have a one year hold period, or
>
> 2. If you live outside Alberta you can subscribe for debt(i.e. make a loan)
> to the company. The loan will have a 2 year term and pay interest of 12% per
> annum. Upon the completion of this funding, Triquanta will apply to convert
> the Loan to equity for any shareholder that prefers to hold shares instead of
> debt.
>
> The combined amount of the debt and equity issues will not exceed $200,000
> USD or $300,000 CDN and will be allocated on a first come, first served basis.
>
> If we can secure this financing the company will go forward and pursue the
> growth of its two subsidiaries.
>
> Howell International Inc. continues to focus on the refurbished telecom
> business with primary emphasis on Philippines, Guatemala and recently Brazil.
>
> As most of you are aware these projects have taken much longer to develop than
> we originally planned, but both Philippines and Guatemala have recently begun
> generating revenue. Howell also continues to be active with Network Programs
> and their in-room gaming product, Golden Vision.
>
> Although each of the above can be important markets and products for us, the
> turmoil that can suddenly occur in these foreign markets, South East Asia
> being a recent example, can destroy cash flow predictions and result in a loss
> of public confidence in the company.
>
> Therefore our major emphasis going forward will be on the national expansion
> of Access Developers, LLC("Access"), our year old Internet Service
> Provider(ISP).
>
> Access conducts business under the name ACCESS 1, with head office and
> administration center based in San Diego, and operations in Orange County, Los
> Angeles and Las Vegas.
>
> With Access, we have a North American based business with, daily cash flow,
> weekly subscriber base growth and the ability to open a new, major
> metropolitan market for their services, every month.
>
> Most importantly from a "market" perspective we have a growth situation in a
> business that is slated for high growth for the foreseeable future. This
> growth is a basic requirement in the success of any small cap stock.
>
> Look at some of Access's recent accomplishments:
> 1. Access sells internet access on a prepaid, annual basis, allowing low
> costs for the consumer and giving Access high cash flow and low customer turn-
> over.
> 2. They have developed a relationship with Ascend Corp., a major internet
> equipment supplier, resulting in a co-op advertising agreement and an
> equipment financing facility.
> 3. Gross Sales and subscriber base have expanded by 30% per month for the
> past year.
> 4. Subscriber base has doubled from 1215, 3 « months ago, to over 2600 today.
> 5. Gross Sales have increased from $22,000/month in November, 1997 to over
> $65,000 in January, 1998.
>
> In Access Developers, LLC we have a growth situation, which I think can revive
> the company and the company's share price.
>
> I believe that we must take control of our own fate in the present
> circumstances. If you agree, I would ask you to contact me to find out how
> you can participate in this funding.
>
> I can be reached at 800-565-4408(leave message if no answer), or at
> 604-732-4354, or by e mail at: buytqt@aol.com
>
> Thank you.
>
> Bob Messenger |
