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Microcap & Penny Stocks : 1st Net Technologies ( FNTT ) -- Ignore unavailable to you. Want to Upgrade?

To: Bear Down who wrote (1763)	11/14/1999 12:07:00 AM
From: Q.	Read Replies (1) \| Respond to of 1827

Pink sheets after Dec. 2, if FNTTE doesn't get a letter of no further comment from the SEC. Here's a newsletter from the new Chairman, who seems to be a bit of a whiner: November 11, 1999 Dear Valued Shareholder: This letter is to inform you of the current status of 1st Net Technologies, Inc. as it relates to our listing on the OTC Bulletin Board© (OTCBB) and our recent stock symbol change from FNTT to FNTTE. On January 6, 1999, The National Association of Securities Dealers, Inc. (NASD©), announced that the Securities and Exchange Commission (SEC) had approved the NASD?s proposed OTC Bulletin Board Eligibility Rule. The new rule permits only those companies that report their current financial information to the SEC, banking, or insurance regulators to be quoted on the OTCBB, offering investors more detailed information about OTCBB stocks. For the record, we are strongly in support of the intent of the new rules. Under the new rule, market makers will not be permitted to quote OTCBB traded securities unless the issuer has filed periodic reports with the appropriate regulatory agency. The filing requirement protects investors by ensuring that they have access to companies? current financial information when considering investments in OTCBB traded securities. As most of you are aware, to comply with this new eligibility rule, we filed a Form 10-SB registration statement with the SEC on August 25, 1999. To do so, we spent thousands of dollars, and considerable time from our executive management, accountants and lawyers. Based on the new rule, companies such as ours would be allotted a certain deadline to comply with these new reporting requirements. When we originally filed on the 25th of August, we believed that we had filed the appropriate forms with plenty of time to meet our deadline for eligibility. The SEC law states that 60 days after the filing date you are automatically effective and are a fully reporting company. But, during this process, the SEC also reviews the filing and makes comments to us to amend the filing to properly disclose items in a form that is acceptable to their rules and meaningful to investors. The SEC has the right to continue to comment on the company?s filing after the sixty (60) day period, but according to how the law is written, the company is automatically effective. SEC guidelines indicate that upon filing a registration with the SEC, they will provide comments within 30 days. Under the ?Exchange Act,? a company must file an initial registration statement (i.e. Form 10-SB) with the SEC documenting its business and financial activities and status, and then must update them on a quarterly and annual basis. 1st Net filed its statement well within the proposed guidelines in order to maintain its listing on the OTCBB. That is how the process is supposed to work. Unfortunately, we have only received one set of comments from the SEC and our filing is now over 60 days old. The NASD has taken a position that a company may only maintain its OTCBB listing once it has received a ?no further comment? letter from the SEC. Under normal circumstances this, in itself, might not be a problem, except that the SEC is receiving an overwhelming amount of new registrations (approximately 600-800 per month) and it cannot handle this tremendous workload. In turn, what might normally take one to two-months has become a much longer process that could drag on for several months. Thus, companies such as 1st Net that are doing everything in their power to comply with NASD eligibility rule are now losing their OTCBB listing. According to the schedule that the NASD has established, if 1st Net has not received a ?no further comment? letter from the SEC by December 2, 1999 then it can temporarily lose its listing until such time as the SEC has completed its commenting process. Our legal team does not agree with this stance taken by the NASD. Currently, we are reviewing our options as it relates to this very important issue. 1st Net's overall business objectives are not impacted by this situation whatsoever. We are continuing to forge ahead along our business plan and, eventually, we will get this issue resolved and it will be behind us. Let us make it clear that if we are temporarily de-listed from the OTCBB, we will continue to trade on the National Quotation Bureau Pink Sheets. Quotes on Pink Sheet stocks can still be obtained via the Internet but they do not show a ?bid? and ?ask,? just last trade and volume. After receiving a letter of no further comment from the SEC, we would again be listed on the OTCBB. In the meantime, we appreciate your continued support. There are currently (43) dedicated 1st Net team members who are diligently working hard every day to ensure a total commitment to managing your investment in our company. Should you have any questions or comments about this situation, please feel free to visit our web site at www.1stnettech.com and drop us a note. I will make sure that someone answers your questions or comments promptly. Sincerely, James H. Watson, Jr. Chairman of the Board of Directors P.S. If you are on your way to Comdex make sure to stop by our booth.