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Technology Stocks : SFLK -- Ignore unavailable to you. Want to Upgrade?

To: Francois Goelo who wrote (1456)	10/19/1999 11:56:00 AM
From: StockDung	Respond to of 1591

On page 25 it says; "The company is currently under investigation by the Securities and Exchange Commission for its optimistic projection of future income. As of the date of this report, the outcome of the investigation is not determinable." I had thought it was only a SEC inquiry. Ooops, I was wrong

To: Francois Goelo who wrote (1456)	10/19/1999 12:03:00 PM
From: StockDung	Read Replies (1) \| Respond to of 1591

Yes but its looking mighty DIM for SFLK as the Dimgroup pointed out in another article on the same link you gave us. A BEVY of good news when SFLK did that 3 million in equity debt financing in convertible preferred and the stock continues to STINK!! Convertible Debentures & Stock Prices dimgroup.com What is a debenture An alternative way to raise capital other than by the issue of shares is to borrow the money by way of debentures. The issue of debentures is a method used by a company for obtaining long term loans. A document or certificate is issued by the company, which acknowledges the indebtedness of a stated sum of money and specifies the rate of interest and repayment date(s) or conditions of repayment. A shareholder participates in any profits of the company which are available for distribution through the medium of dividends which must first be declared before he enjoys any right thereto. A debenture holder on the other hand, receives interest at a predetermined rate which is payable at fixed times, irrespective of whether the company earns sufficient profits. A debenture holder is a creditor of the company in contrast to a shareholder who is a proprietor of a company. Therefore debenture holders rank higher than shareholders in the line for liquidation proceeds. Making a debenture Convertible Often to attract financing a company must make the debenture more attractive. This may take the form of making the debenture a convertible one where the holder could convert the debenture into shares of the company. Additionally, many of these convertible debentures often offer a discount to average trailing price which can range from 65-80%. If the holders of the convertible debentures convert their debentures into stock this acts as an immediate dilution of the outstanding shares often at large multiples. While this factor is important to keep in mind an even more controversial question concerns whether the holder of convertible debentures sell short the shares of the company they hold the debentures in. A common opinion amongst anti Debentures is that the holders of these debentures sell the shares of the company short, helping drive down the price so they can convert their debentures into more shares. Logically such a move would seem practical as this would offer the debt holders a method to regain their capital and maximize their profits. However for holders of the stock this is not good news as the stock price is sure to fall. Pro Debentures however argue that presence of the debenture holders in many cases help the company to survive. It offers capital to a company that in all likelihood, could not obtain alternative more favorable financing. The capital may help pay off immediate company debts, which might have forced the company into bankruptcy or the capital may be used to help fuel expansion that would not otherwise occur. Therefore, the debentures help a company long term. Whether you are for or against this form of financing, it is being used more often. Understanding and discussing the possible implications is of benefit to all.

To: Francois Goelo who wrote (1456)	10/19/1999 12:22:00 PM
From: StockDung	Respond to of 1591

"Flo, I'd call you a liar first... They only received a proposal and you have no proof SFLK has accepted this PARTICULAR PROPOSAL... Wake up..." F. Goelo + + + ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' Convertible preferred, right on page 10 of IBDO's report. "Management is also pursuing additional financing and has received a draft proposal for the sale of up to $3,000,000 of convertible preferred stock" You owe me an apology Francois Softlink, Inc. Receives $3 Million in Equity Financing Business Wire - September 08, 1999 09:29 SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 8, 1999--Softlink, Inc. (OTC BB:SFLK), the leader in multimedia email solutions, today announced it has received $3 million in equity financing to continue its growth in multimedia email solutions for the Internet era. Softlink products, eMail inChorus(TM) and eMail VOICELink(TM) are changing the way people communicate through email, making it possible to easily compose, send and deliver highly compressed multimedia-rich messages. This latest round of funding is shared by Deephaven Capital Management, a Minneapolis-based $350 million investment management group affiliated with Arbitrade Holdings LLC (www.arbitrade.com/), and Hornblower Investors LLC, an investment fund managed by WEC Asset Management LLC, a New York-based investment management group. "Softlink is one of the leaders in providing innovative software for email communication," said Bruce Lieberman, portfolio manager with Deephaven Capital Management. "Email has become a standard form of communication for personal and professional use. Softlink is raising the standard of text-based email to multimedia-rich email. We're very pleased to be involved in this visionary development." "This latest round of funding enables Softlink to continue its leadership in the multimedia email market by quickly bringing the best products to corporate users and consumers," said William Yuan, CEO of Softlink. "The investment strengthens Softlink's position for rapid market expansion and growth." About Deephaven Capital Management Deephaven Capital Management ("Deephaven") links the proprietary investment management and trading experience of Arbitrade's principals to outside investors through a family of hedge funds (the "Deephaven Funds"), including the Deephaven Market Neutral Funds (formerly KA Holdings and KA Trading) and the Deephaven Opportunity Funds (formerly KAE Opportunity Funds). Deephaven is headquartered in Minneapolis and has satellite offices in London and New York. About WEC Asset Management Based in New York City, WEC Asset Management manages investment in privately placed securities of public companies, through various investment funds. About Softlink, Inc. Founded in 1996, Softlink, Inc. is an innovator in multimedia-based Internet communications. Using proprietary compression and composition technology, Softlink's eMail inChorus and eMail VOICELink products revolutionize conventional text-based email with voice, graphics, pictures, animation, and live annotation. The company is publicly traded, OTCBB:SFLK, and maintains headquarters in Santa Clara, Calif. For more information visit the company web site at www.inChorus.com. For Investor Relations, please contact Gerard Damaro at 561/367-0363. Note to Editors: eMail inChorus and eMail VOICELink are trademarks of Softlink, Inc. All other trademarks are the property of their respective owners and are acknowledged. Information contained in this press release contains "forward-looking statements" which can be identified by the use of forward-looking terminology. Various risk factors could cause actual results to vary materially from the future results covered in such forward-looking statements, including, but not limited to, the impact of competitive products and pricing, the management of Softlink's growth and the timely development, delivery and acceptance of new products. These forward-looking statements represent Softlink's judgment as of the date of this release. Softlink disclaims, however, any intent or obligation to update these forward-looking statements. CONTACT: Softlink, Inc., Santa Clara Lauren deVries, 408/496-6668 ldevries@inChorus.com