From CALIFTALK
Subj: Re: News
Date: 98-08-14 15:59:48 EDT
From: CALIFTALK
To: Stkg1
The debenture holders were outside investors, clients of Secure Investments,
that wanted the big profits. And accepted the big risk. They received up front a 20% discount and 12% interest and a 20% discount when converting.
And the broker received 10% commission and 2% allowance for expenses.
The money thus cost 52% dilution in cash and stock.
Then they converted a portion of the debentures to shares, sold the shares
and repeated the process.
But one unexpected kicker was the fact that all along,
a broker in Canada, kept selling shares and depressing the price.
The seller was Burditt, using one of his alias company names, and avoiding
SEC reporting requirements, and Oliver Timmins knew the truth and covered
for Burditt. Everytime good news was announced they sold into the demand
and depressed the price but were able to sell large blocks, and then the broker
in Canada, wired the cash to Burditt's company, such as Phoenix Resources
with a bank account in Texas. |
