David,
I have seen this happen before. I wonder who this private investment group is. I wonder if this "agreement not to sell" is in writing. I also wonder what the "price" of these shares were. At .10-.25 cents per share .50 would be a good profit for them. They would have to be "very committed" to the company not to sell........and unless they are, they will cut our throats and take our money. Has anyone asked these questions??? I am not saying that Mr Gordon is being untrue in his statements....I'm saying that maybe the "private investor group" is.
If TSIG/Gordon had an agreement in writing that these shares must be held, If the investor group sold any of them, TSIG could force the group to buy them back thus creating a "short squeeze" in effect.
Please don't take me wrong....I own shares in this company. I would just like some answers. I have e-mailed Liz and she is sending me an investor package tomorrow....although these answers will probably not be in this package.
Lee
"What he did do was sell his shares to a private investment group and, in effect, actually placed these shares as collateral for a loan that, once received, was then loaned to TSIG. He told us that he is able to recover these shares, upon repayment of the loan, and that this investment party agreed not to lend these shares out to anyone for shorting purposes, nor will they sell them."
Edit:
From the June 25, 1998 Form S-8
THE OFFERING
<TABLE>
<CAPTION>
<S> <C>
Common Stock offered by the Selling Security Holders Up to 12,214,710 Shares
Shares of Common Stock Outstanding as of June 24, 1998 43,963,030
Use of Proceeds The Company will not receive any proceeds from the sale of shares by the Selling Security Holders
My question?? Who gets the proceeds...are they being used to retire the debt?
Over-the-Counter Bulletin Board Symbol TSIG |
