The following is a list of questions I sent to Geoff Eiten at OTC and his responses.
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From: Geoffrey Eiten, INTERNET:geiten@otcfn.com
TO: "Ken J. Sammut", 102637,130
DATE: 9/16/98 6:56 PM
RE: Re: NUOA
Sender: GEiten@otcfn.com
Dear Geoff,
>Great to see that Fred has been busy. Unfortunately, the deal with
>Flexweigth is confusing especially when it appears that Flexweight has very
>little going for it and seems to be a shell.
>
>Would you please respond with some information I can share with the
>different NUOA threads. We need a lot of new investors to get interested in
>NUOA.
>
>These are some of the questions being asked.
>
>1. How has Flexweight been able to command such a high price with very
>little assets?
Reverse merger/split.
>2. Fred Sr. has told some shareholders that he expects a 1 for 10 allotment
>of FXWA shares to NUOA shareholders. Can Flexweight keep its present price
>when the deal is done? What is your experience? Some are saying the
>dilution will be tremendous while others are saying we could see an initial
>pop up in the Flexweight shares. It would seem that Fred went this route
>for several reasons with one being Flexweight's ability to be listed. A
>drop in its price could ruin that hope.
Fred is currently exploring the tax implications of distributing those
shares. He is also looking at the possibility of distributing warrants to
buy those shares at a very low exercise price as compared to the current
market price. Understand one thing. If Fred distributes any or all of those
FXWA shares, they will be restricted and could not be sold for one year.
This will give him time to merge into FXWA other casinos in the US that he
has been talking to. So, to answer your question, FXWA should pretty much
retain its current value. If Fred was issuing free trading shares, FXWA
would go under $1.00, but he is not. I think it will stay above $4.00 which
is needed for NASDAQ.
>3. Many were concerned that OTC sold as many of it's NUOA shares as it did
>in June and July. Assuming you were not aware of Fred's dealings with
>Flexweight, would you have sold all those shares knowing what you know now?
>Or was it a matter of generating some cash and you had no choice.
OTC was paid for a year and a half of services six months ago. Could you
afford to do business with a client, spend out of pocket money, not get
paid for a year and a half, and exist? Well, we cant either. We had no
choice but to sell shares in order to meet my payroll of $70,000 per month
(20 employees). Sorry if it looks bad.
>4. Any plans for the domestic gaming sub of NUOA?
Talking to El Rancho Hotel on the strip in Las Vegas, also Playboy and the
Sands in Atlantic City.
>5. The Bahamas keeps coming up as the next place Fred may open up or take
>over a casino/hotel. Any thing you can share?
Yes. Its not the Bahamas, it
is a number of different islands in the Caribbean, Curacao, Antigua and
some other island. If anything develops, we let everyone know.
>6. Any news on the arbitration case with the Gammarth Developer? It would
>seem that NUOA could negotiate either a nice cash settlement, better
>leasing terms, or greater ownership in both the hotel/casino as well as the
>commercial property.
No news, but lawsuits take forever. I wouldnt count
on it.
>7. Time frame for the Flex deal to be completed. Some are saying by the end
>of the month.
Very Shortly.
>8. Some have suggested (including myself) that NUOA buy back some shares
>before the Flexweight deal is completed as this would reduce the number of
>shares outstanding and give shareholders more of an allotment of Flexweight
>shares.
Fred has lined up some major funds and individuals in Europe, however, they
can only purchase shares of stock that sell over $1.00. This is one of the
reasons he did the FXWA deal.
>9. Fred has hinted that the financing money should be in his hands within
>the next ten days. Does this look like it will happen?
YES. Fred is in London and on his way to Hong Kong.
>
>I keep hearing that there is a lot of money on the sideline waiting to
>invest in NUOA once certain things happen (do not know what they are).
>There are a number of us who will be happy to spread the word if you can
>give us enough non-insider information to get people excited. Understanding
>the Flexweight deal and what it could do for NUOA shareholders would be a
>great place to start along with answering as many of the above questions as
>possible. See question 8.
>
>Thank you,
>
>Ken >> |
