Subj: Answers (6 - 13)
Date: 96-10-30 21:50:52 EST
From: WingOvers
Continued from previous page.......
Q 6. Ed Kelly stated that they had the ability to produce 750-800 machines per
month. The first order for supposedly 5000 machines would take place over 6
months just to fill that order alone. What type of income stream is that going
to give them?
A. 6. We have stated in the past that Tasty Fries, Inc. believes it will need
three or four manufacturing locations to satisfy the demand for our French Fly
Vending Machine. Without divulging corporate profit margins or finalized
pricing, be assured that 5000 machines leased or sold would immediately generate
profits in excess of $10,000,000.
***
Q. 7. Without any cash flow projections it is hard to put any type of value on
this company. IMHO it is going to be awfully difficult for McLaughlin to bring
an investor into this company. There is nothing that can be offered as an
inducement to an investor ....(or is there?)
A. 7. Tasty Fries, Inc. has always generated cash flow projections. The value
of this company is clearly its revolutionary French Fry Machine, its proprietary
potato product and the huge untouched market it is about to enter.
***
Q. 8. WILL BE ANSWERED IN THE NEAR FUTURE.
***
Q. 9. If retooling is going to be completed and if production is a few small
steps away, then there should be no reason for the downward trend. Can you help
with this one?
A. 9. We are not retooling, we are tooling for the first time. You must be
realistic when assessing trends of stock. First, this is a penny stock (highly
volatile). Second, there are 94,000,000 shares outstanding ( non-controllable)
Third, the buy in price varies from 4 cents a share to 66 cents a share ( a
downward trend has nothing to do with progress, merely profit taking and cutting
losses). Once we are in production, we are optimistic that our efforts will be
properly reflected in the share price.
***
Q. 10. When are they planning a shareholders meeting and where will it be held'?
A. 10. A date for the shareholders meeting has not been determined at this time,
however it will be held in Pennsylvania (corporate headquarters).
***
Q. 11. What are the statues of the competition? What do they know about the
French company that is planning to build similar machines? I posted the full
article awhile back. Also, it's still on AOL under search "fries."
A. 11. See Answer #1
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Q. 12. That long ago spoken in $2 million in financing. How much of it was
received? Why wasn't the balance received? What action was taken when the rest
of the 2 million was never made available?
A. 12. The $2 million dollar deal was as follows: Tasty Fries Inc. was to sell
International Tasty Fries 25,000,000 shares of common stock at 8 cents a share
(25,000,000 x 8 cents = S2 million). In addition Tasty Fries, Inc. was to grant
International Tasty Fries additional distributorships in the United States and
Europe. International Tasty Fries came up with $800,000.00 in April 1995 but
failed to pay an additional $1,200,000 in July 1995. As a result of their
failure to pay, Tasty Fries International received only 10,000.000 shares of
stock (10,000,000 x 8 cents = S800,000.00) was not granted additional
distributorships and was not given two seats on the Board of Directors.
***
Q. 13. The more recent discussion about $15 / 16 million in financing. Where the
contracts ever signed? If not, why not? If so when? Is this financing contingent
upon any covenants in the loan agreement? What rate is being charged? Are any
stock options attached to the deal?
A. 13. It is not a discussion, it is a signed deal You have forgotten the most
important word in your question, lease financing. We get the money when we
deliver the machine to the leasing company. There is no rate, option, loan or
stock associated with the deal.
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