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Technology Stocks : Creative Computers(MALL) -- Ignore unavailable to you. Want to Upgrade?


To: J.Y. Wang who wrote (1507)7/14/1999 11:03:00 AM
From: David Wise  Read Replies (1) | Respond to of 1634
 
With UBID picking up Prodigy and now an Australian contract, maybe some people don't realize that this will profit MALL. They still have a joint marketing agreement ("As consideration ...uBID will either make a payment of $10,000 per month to the Company or the Company...may elect to receive a banner advertisement on each page of uBID's Website...").

MALL also is reimbursed at cost plus 10% for Internet and Telecommunications services provided to uBID - "including hosting uBID's Website".

There's also a sublease agreement, basically at cost for uBID, but looks like it benefits MALL indirectly.

Then there's a loan still due from uBID to MALL with interest at prime.

So the more uBID grows, the better for MALL. (Source: Creative Computers, Inc. "To the Stockholders of Creative Computers - Information Stetement" dated May 26, 1999. Prepared to explain the terms of the uBID spin-off.)