it's time for a math session, Bill. Start with these facts:
1. As of 11/20 Hightech had a total of 7,992,050 shares outstanding, of which Stockett, et al were to buy 85% or 6.78 million shares.
2. on 12/6 Stockett grants an option to sell IPO Network, of which he is the majority owner, to HTEH for 2 million new shares in HTEH. This is despite the fact that the terms of the sale of the HTEH stock require that any new shares being issued by HTEH be issued for CASH until such time as the 6.78 million shares he was buying were actually paid for - he only issued a promissory note for those shares and he had 90 days to pay for them. He had NOT paid for them by 12/6/96 but then he was only issuing an option to sell the IPO Network as of that date.
3. On 1/15/97 he issues a press release that says Stockett paid 4 million new shares of HTEH for the karate schools. The exact words are "...four million shares of Hightec stock was paid in the transaction". Did he get cash for them? No, he got karate schools which produced unaudited earnings of at least $400,000. as of 1/15/97 he had not yet paid off the $160,000 promissory note; it wasn't paid off until sometime in the last few days, I understand, right at the 90 day deadline or slightly past it.
Now we come to Monday's press release which stated:
"In aggregate, three million, four hundred and twenty thousand (3,420,000) new shares of Hightec and five million six hundred thousand (5,600,000) new shares of Sinclare were agreed
to be issued to five international investment groups which agreed to settle outstanding claims against Sinclare and invest a total of $1 million into Hightec, Inc. for use by its subsidiaries over
the next three months. The total shares outstanding in Hightec, Inc. will become 17,599,050."
The math comes 17,412,050 but somehow another 187,000 shoares slipped out somewhere.
More interesting numbers - first he claimed that the karate schools did $2 million in revenues for 1996, with the unaudited net of $450,000; now the combined HTEH/karate/IPO-Network did only $1.4 million in sales for all 3 entities, with a combined net of $450,000.
Revenues dropped 30% from the first rendition to the 2nd but net results remained the same.
And, Bill, the "5 international investment groups" got $7,517,500.00 worth of HTEH and SNCG stock in settlement of their claims. That's based on HTEH's quote of 1 5/8 and SNCG's .35. In return they gave back $1,000,000 for the investment in the 3 subsidiary companies (karate, IPO Network and SNCG). How that $1 million gets divvied up is up to Stockett of course.
Anyone know what the Financial Posts's advertising rates for inserts? In addition there would be the production cost of enough copies of TNI Strictly Canadian required to be inserted in the full press run of the Financial Post AND the cost to reproduce disk sets of FQ for inclusion (how many disks are there - 2, 3 or???) PLUS the cost of a free month's usage of NeuroPro. That includes server time, connection time, any hardware upgrades required to handle many thousands of additional "hits" per day (if people do try it out), etc.
On top of that there'll be advertising in IBD ("a free trial of the software") but it's not clear if the disks will be included with the ad or if it's just an ad offering the download of the software.
Anyone know what IBD charges? |
