Starnet Share Structure
In response to Mephistopheles' and Drake's inquiries, here is my general explanation of Starnet's share structure (our CEO is currently speaking at the International Gambling and Wagering Conference in Las Vegas):
Shares Outstanding = 20,000,000
Private Placements = 2,450,000 (A)
$2.00 Warrants = 2,450,000 (B)
$4.00 Warrants = 2,450,000 (C)
Employee Stock Options = 3,000,000 (D)
Total, Fully Diluted = 30,350,000 Shares
Explanation:
The private placements completed late last year (A - please refer to our news release issued December 9, 1997) brings the current total number of shares outstanding to 22,450,000.
If exercised, the warrants entailed in the private placements (B & C - please refer to the aforementioned news release) will dilute Starnet by a further 4,900,000 shares.
We feel the private placements completed in December were structured to eliminate the necessity for further financing and dilution.
Employee Stock Options (D) = On March 12, 1998, Starnet filed (in addition to its 10QSB) a Registration Statement outlining the authorization to issue up to 3,000,000 units under an employee stock option program. (It's stated in the same document that 2.25 million of these stock options were recently issued to employees at a strike price of $0.74 per unit.)
3 million options amongst 82 full-time employees/contractors (and growing) - entirely reasonable in my personal opinion - and we can only exercise them over an EXTENDED period of time!
Nonetheless, fully diluted, there are 30,350,000 Starnet shares outstanding.
Keep the dialogue up!
Warmest Regards,
STARNET COMMUNICATIONS INTERNATIONAL INC.
Jason King
C.O.O. |
