THNS - Technest Holdings (Prev. FNTN) Message Board

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Microcap & Penny Stocks : THNS - Technest Holdings (Prev. FNTN)

THNS 0.00

Jun 7 5:00 PM EST

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To: Dream On who wrote (11411)	3/16/1999 3:37:00 PM
From: C Horn	Read Replies (6) of 15313

Quiet Period - Summary According to the Securities Act of 1933, the secondary offering becomes effective after a 20 day "quiet" period, unless the SEC requires more information or has questions on the SB-2. If the SEC does have questions, or does require additional information, they (SEC) have 10 days from the filing to get the questions to the company (FNTN). The company would then respond to the SEC questions with a supplemental filing SB-2/A. It is my understanding that the company can waive the 20 day rule and the 10 day rule to eliminate the time pressure. We know FNTN has to submit the audited financials in a supplemental filing. The quiet period extends until the time that the registration of shares becomes effective. At that time, the quiet period is lifted and the company can begin to advertise the shares being offered. In all likelihood, FNTN will be bombarded with calls from Underwriters and Investment Bankers with offers of representation of the offering. This will give the company a great deal of exposure to these firms who will in turn market the offering to Broker/Dealers and other investors. The shares being offered will be priced at the same price as the previously trading shares on the day that the new shares begin to trade. This could be many months down the road, long after the quiet period has been lifted. The long-term investors should benefit greatly from the secondary offering as follows: 1. A great deal of exposure to Underwriters, Investment Bankers and Broker/Dealers (who are potential customers). 2. Influx of cash to be used in marketing. Only 50,000 was spent in marketing in 1998. 1.6 million of the offering proceeds are earmarked for marketing - which should lead to more contracts/revenue. 3. FNTN will obtain fully reporting status as soon as the offering is effective. The downside is the dilution - the current o/s shares are 22 mil (rounded up) - the new o/s shares will be 25 mil (rounded up). A block of 100,000 shares will now control .004 percent of the company - it previously controlled .0045 percent of the company. Hope this helps. CH

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