Copytele filed its 10Q for the period ending Jan. 31. Once again, there were no sales either by Copytele or by the joint venture. (Does anybody remember Denis promising otherwise at an annual meeting?)
The amount of money owed to Copytele by the joint venture continues to grow, as COPY is funding the JV's purchase of inventory to build products.
There was this interesting blurb in the 10Q, which suggests that COPY shareholders will see another 20% dilution in the future:
The Company announced in December of 1997 that it is engaged in preliminary
discussions with SIEC. The present intentions of the companies as set forth in a
non-binding letter of intent is to mutually cooperate to develop, produce and
market high technology products, under mutually acceptable terms, using the
Company's overall flat panel and associated technology. The parties also intend
to cooperate to mutually market certain of SIEC's products, to be enhanced by
the Company's technology, outside of China. In order to share in their
respective efforts, the companies are attempting to devise and agree upon a
means to share an interest in each other's company. It is presently contemplated
that the Company would issue common stock in an amount representing less than
20% of its currently outstanding shares in exchange for an interest in SIEC's
holdings. The companies are in discussions concerning the details of this
possible arrangement, although it is expected to take a number of months before
the parties could enter into a final, binding agreement. There can be no
assurance that the parties will be able to arrive at mutually acceptable
agreements or obtain the requisite governmental approvals. Among the issues to
be finalized are those concerning the valuation of CopyTele's shares, the form,
structure and valuation of the interest in SIEC's holdings that would be
exchanged for CopyTele's shares, the nature and structure of the venture, the
specific products to be developed for sale and the likely timetable for
implementing the venture. As previously disclosed, the Company entered into a
letter of intent in 1996 for the formation of a second joint venture with SECC.
In light of the Company's current discussions with SIEC, however, the Company
has determined that it is unlikely that it will pursue this second joint venture
if a definitive agreement is ultimately reached with SIEC. |
