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Microcap & Penny Stocks : MIDL .... A Real Sleeper

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To: Joe Algermissen who wrote (5477)4/24/1999 1:07:00 AM
From: Ga Bard  Read Replies (1) of 7039
 
Its all in the filings ... From the 10K ....

C. Investment: During 1998, the Company purchased common shares in Cyberquest,Ltd., a privately held Colorado corporation (Cyberquest), for $23,125. These shares of Cyberquest were later exchanged for 1,315,800 common shares of CBQ, Inc. (formerly known as Freedom Funding, Inc. ), a publicly held corporation (CBQI). This exchange was characterized as a tax free reorganization under the Internal Revenue Code and resulted in Cyberquest becoming a wholly owned subsidiary of CBQI and the Company holding restricted shares in CBQI. A former executive officer and director of the Company at the time of the investment in Cyberquest and the exchange with CBQI was also then a majority shareholder, executive officer and director of CBQI, although this person was never a shareholder, executive officer or director of Cyberquest. Cyberquest is a developmental stage company operating in the internet business. The Company's investment is stated at cost at December 31, 1998. Management believes the stated cost of the investment approximates fair market value at December 31, 1998. It is reasonably possible that management's estimate of the fair value may change.

GB
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