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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?

To: ED S. who wrote (31534)	6/20/1999 8:06:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 44908

Ed, I think you must have missed the post where I said it it too late now. All I can say is "how I would have done it", and that is a worthless exercise. There could still be one window of opportunity, and that would be to downsize the business plan to sales in the first year of let say just $10 MM for which only about $3 MM would be required as working capital and start up costs. Get those funds from the existing shareholders through a "rights offering" at a fixed price (right now probably in the $.06 to $.1 per share). You'll have to be smart to structure it so it does not back fire, you should attach a first right of refusal to existing holders for rights not exercised by others in proportion to their current holdings. In theory, you should be able to raise the $3 MM this way (maybe as much as $9 MM if you can get $.1/share and all 90 MM shares participate). Before you can do that, you will have to negotiate with the PP a floor (Marty suggested they do that but was laughed out, apparently). Since the current PP does not have, to the best of my knowledge, a ceiling, a good negotiator could negotiate a new deal in which a floor is fixed for the PP, at the current price of $.06, but so is a "fair ceiling" (like $.3 or so). That might stop the "bleeding" of the current PP. As a sweetener, I would give the PP holders the same rights offering as given to the share holders (but I doubt the PP's are going to take that bite), and add a sweetener (to both) in the form of three years warrants to buy additional shares, let say at the ceiling of the converts. That could be a start to a negotiation position to remove the floorless. With the floorless in place, I believe that TSIG is doomed. Zeev