NewCom (NWCM) Message Board

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Technology Stocks : NewCom (NWCM)

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To: Cool Hand Luke who wrote (505)	6/19/1998 8:38:00 AM
From: RBattman	Read Replies (1) of 662

Cool Hand: Minor corrections. The 15mm owed by NWCM to Aura consists of intercompany debts to Aura incurred prior to the spinoff. Source was not necessarily related to debenture financing for Aura. When they did the NWCM ipo they turned this intercompany debt into a note with a sept 98 maturity. Aura then did the debenture financing or restructuring and pledged some of it NWCM stock as collateral (if I recall correctly, they also pledged their NWCM note receivable). The NWCM stock is part of the 7.2mm shares owned by Aura. All of its is outstanding but not registered (ie can't be resold). NWCM is obligated to register up to 3mm shares this sept. and the rest next year. Selling this stock would have a dilutive effect because it would put more stock into the daily float. HOwever, if you look at NWCM's financials, they are already calculated based on 8-9mm shares of stock. That is, they calculate their numbers including Aura's NWCM stock. By the way, I don't own NWCM stock. I am an Aura shareholder. If find it interesting that tak 5 and boxster are sharing their negativity on the Yahoo NWCM board as well. Me thinks they protesteth too much.

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