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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (4763)	12/3/1999 8:41:00 AM
From: Tom C	Read Replies (1) \| Respond to of 7056

The 5 million shares for 100.0 million is mentioned in NOTE 11 SUBSEQUENT EVENTS page 34. On May 15, 1999, the Company entered into a non-binding letter of intent to issue LFT an additional five million shares of its common stock at a price of $100.0 million. The issuance of the shares is subject to an increase in the Company's authorized shares and due diligence to the Company's satisfaction on a $900.0 million Promissory Oil Production Note to be delivered as collateral for LFT's obligation to pay the purchase price. The Company's security interest in the note is to be limited to $100.0 million and is to be an undivided interest with LFT, who has agreed to permit the Company to receive the first $100.0 million paid under the note. There is no assurance the Company can obtain stockholder approval for an increase in authorized shares or that, if the transaction is completed, any payments will be received on the note (in which case the Company would seek foreclosure on certain oil and gas leases securing the note). Pending such shareholder approval, the Company's Chairman of the Board, and a principal stockholder, has transferred shares from his own account to LFT to hold the transaction. The Company's Chairman has retained the right to vote the shares transferred to LFT on all matters requiring the vote of stockholders. Upon completion of the transaction, the shares transferred by the Company's Chairman to LFT will be returned to him. .... I wonder if the original PR stated it was a non-binding letter of intent? Tom