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Microcap & Penny Stocks : Socket Communications (SCKT) -- Ignore unavailable to you. Want to Upgrade?

To: caly who wrote (801)	5/11/2000 7:41:00 PM
From: J L Segal	Respond to of 932

Perhaps this (more recent) e-mail from SCKT CFO may answer more questions: (very interesting!) ragingbull.com Just to allay some fears I e mailed Dave Dunlap with a summary of investor concerns and his reply confirms everything that my sources tell me if you are able to read between the lines. Everything is moving forward well at Socket as outlined in our management conference call on April 26th (transcript and audio are available on Vcall.com under our trading symbol SCKT). The Nasdaq delays are a case of lots of pending listing applications being handled by an overworked Nasdaq staff. They reviewed our application for completeness in February, provided us with a list of additional information they needed once they ascertained our category which we provided in March, and collected analyst reports from third parties in April so that they would be ready to commence the final stage which is a due diligence stage where they confirm the information in our application, read all of our materials, and talk to many of those that work with the Company including accountants, analysts and market makers. I talked with the examiner earlier this week who confirmed that they are still working on applications ahead of ours and that we are firmly "near the top of the queue". We believe we qualify for the National Market Exchange and expect the review to complete quickly once the final phase is started. In our proxy materials to Socket's stockholders (filed on Edgar) we are requesting stockholder approval to increase the authorized number of common shares from 50 million to 100 million, and you may be comparing our fully diluted share number of 25 million to the newly requested authorized total. The reasons for the requested authority are addressed in the proxy: "The Company believes it is important to retain a significant reserve of authorized but unissued Common Stock that could be used to raise additional capital through the sale of securities, declare stock dividends or stock splits, acquire another company or its business or assets, create negotiating leverage and flexibility in the event of an unfriendly takeover bid or establish a strategic relationship with a corporate partner, among other uses. In particular, the Company believes that maintaining a sufficient reserve of authorized but unissued Common Stock is important to preserving the Company's flexibility to enter into future financing opportunities. The Company expects to seek to raise additional capital through equity financing, joint ventures with corporate partners or through other sources." It is traditional for U.S. companies that the Board of Directors have flexibility to deal with challenges or with the opportunities that affect a growing company as addressed above, and having a sufficient reserve of authorized but unissued capital is part of that tradition. The Board has always been sensitive to dilution in decisions regarding equity and their focus is on maximizing shareholder wealth. You will also note in the Proxy two new directors to be approved at Socket's stockholder meeting in June, Leon Malmed and Enzo Torresi, who bring a great deal of experience to the Board. Best regards, Dave Dunlap, CFO