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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Lucky888 who wrote (29711)4/13/1999 12:24:00 PM
From: StockDung  Read Replies (2) of 122087
 
1. Coyote makes a 19.9% investment in Crescent. Coyote's investment consists
of warrants in Coyote stock. Crescent hands back to Coyote actual Crescent
stock in return for the warrants.
2. Meanwhile, Coyote sells some equipment to Comdisco, which pays for it in
cash. Coyote books the income.
3. Comdisco then leases the equipment to Crescent. Crescent uses the Coyote
warrants to cover 20% of the lease.>

It's hard to keep this simple. So in a nutshell we have cyoe warrants going to crescent -- who gives them to comdisco-- who exercises them and gives money to cyoe. In exchange for the money cyoe gives comdisco equipment-- who gives the equipment to crescent who probably gives the equipment back to cyoe.

So the equipment goes: cyoe-comdisco-crescent-cyoe.
And the money/warrants go: cyoe-crescent-comdisco-cyoe.
With every circle tour profits, sales and revenues are booked. Or if need be losses, sales and revenues.
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