When it comes to the company's history of prowess in the financing department,let's hope the adage,"history repeats itself" isn't true..;^)DD
"4. Subsequent to the end of the period covered by this report, Felcrest
Trading Ltd. ("Felcrest"), a defendant in a lawsuit filed by Robert P. Gordon,
individually, filed a third party Complaint in Circuit Court for Pinellas
County, Florida, on October 23, 1998, against TSIG, VSIC, and current and former
officers and directors of TSIG and VSIC and other third parties (collectively
the "Third Party Defendants"). The third party complaint asserts civil claims
for unspecified damages against the Third Party Defendants for alleged
securities law and uniform commercial code violations, fraud and negligent
misrepresentation, in connection with a private loan made by Felcrest to Gordon.
The Third Party Defendants were not parties to the private loan made by Felcrest
to Gordon, and Management believes that the third party claims are without
merit.
The original lawsuit was filed by Mr. Gordon against Felcrest on
February 9, 1998, in connection with a loan agreement wherein Felcrest loaned
$1 million to Mr. Gordon. The loan was secured by shares of common stock to TSIG
owned by Mr. Gordon, and was convertible into those shares unless the loan was
first redeemed by Mr. Gordon. Mr. Gordon alleges in his complaint that Felcrest
manipulated the market price of TSIG's common stock, by engaging in
short-selling, in an effort to cause a technical default in the loan agreement
which triggered a substantial penalty and permitted Felcrest to convert the loan
into shares at an artificially reduce price."
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