Zitel-ZITL What's Happening Message Board

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Technology Stocks : Zitel-ZITL What's Happening

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To: Warren Gates who wrote (1316)	12/1/1996 10:15:00 AM
From: dppl	of 18263

Warren this is what I can't figure out either - first of all if MATR is so hot why do they need ZITL at all. They could get $3.5 M from anyone and not give up anything. $3.5 M is spare change for small investment bankers. What is ZITL bringing to the table that no one else can bring (CA, Andersen, small outfits like these--)? And if MATR only got a debt instrument from ZITL for 1/3rd ownership they must be hopping mad now. As I say, they can't even afford to buy ZITL ordinary shares. The question is : what are the terms of the license. By how much are ZITL's exploitation of the license diluted by MATR 2/3rds ownership of the technology? Why didn't MATR just license the technology without giving up ownership and engage in a contractural or royalty relationship? Would it be because ZITL thought the technology was too risky? What is this exclusive license? For how long is it valid? What if ZITL slips up? Are there escape clauses? I repeat: either ZITL pulled off one of the big heists of the century in the deal making arena, or, as Barron's says, something doesn't compute. Thomas

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