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Technology Stocks : Lance B's : Its A Beautiful Thing -- Ignore unavailable to you. Want to Upgrade?

To: Wayne Rumball who wrote (1668)	12/1/1999 8:41:00 PM
From: Sprintcar	Respond to of 4792

To: Sprintcar who wrote (15536) From: RG Wednesday, December 1, 1999 8:31 PM EST Reply # of 15545 CDNO, the 10QSB explains it all. Someone close to the source has informed me that they have cleverly negotiated with the lenders already, but for all intense purposes, they had to word the PR this way to protect all parties involved. In reality, once they liquidate the assets and do some clever financing with the additional 10 million, which CDNO will get paid for it services in getting that 10 million in funding, they will owe the lenders less than $1 million. The 10QSB says they have estimate assets ov $7 million. Historical Basis, says they have assets of $18 million. It looks like to me that when this merger is complete we really won't be seeing 750 million additional shares and CDNO and Mr. Bailey may walk away with some monies in their pockets. This is a qoute from the 10QSB: Since no agreements have been reached with the creditors, all liabilities have been included at their historic cost basis. The Company also has estimated the realizable value of the accounts receivable and inventories at the amounts reflected in the historical cost accounting records. The realizable value of the machinery and equipment has been estimated to be equal to the amount proceeds from the property and equipment of the two California operating subsidiaries that occurred in October 1999, and an offer to sell property and equipment of the Ohio subsidiary received in October 1999. Proceeds from the sale of California assets were used to reduce senior debt. If the amounts realized from the sales of assets is greater than estimated using this method, the additional proceeds will be used to reduce the unsecured debts. It is at least reasonably possible that the amounts expected to be realized in the liquidation process will change in the future. Future reporting will reflect any changes in estimated values based upon the most current information then available. "