FRANKLIN TELECOM (FTEL) Message Board

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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL)

FTEL 0.870

-10.7%

1:05 PM EST

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To: Bob Swedelson who wrote (32599)	4/23/1998 1:32:00 AM
From: Bruce Hoyt	Read Replies (3) of 41046

Bob, small correction or additional info. to your good explanation. There are approx. 23 million unregistered shares of FNet that have been issued. Franklin owns 15.8 million shares (~69%). The remainder are private placement shares that also cannot be publicly traded until after the IPO occurs and registration of these PP shares takes place. They will likely face some additional sale restrictions for up to one year. However PP holders could sell them privately to "qualified investors" with approval from Franklin at any time. The shares of FNet not owned by Franklin are held by about 30 individuals. Frank Peters has the bulk of the shares, with 4 million well-earned shares. The rest of the FNet holders have various amounts to make up the remainder of the shares. The offering was made to all FTEL holders and advertised in the Wall Street Journal and elsewhere starting a little over a year ago. Initially the minimum buy was 20k at a buck a share and you had to meet stringent legal "qualified buyer" restrictions. After FNet IPOs, Franklin will still own their 15.8 million shares, unless any of these are used as partial payment to an equity partner, which I doubt. New shares will be issued for sale at the IPO on top of the ~23 million shares and sold through the underwriters to their customers and on to the public. My GUESS is 5-6 million shares. A small portion of the PP shares will also probably be sold at IPO time. That will represent the float at that time. If FNet IPO'd at $20 (needs a lot of things to fall into place first), then Franklin's FNet shares are worth ~316 million bucks. And once FTEL is listed (automatically at IPO if not before) the street will sooner or later build the valuation into the FTEL stock price. Bruce de FTEL/FNet stockholder

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