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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: Lawrence Burg who wrote (33173)	7/7/2000 2:13:11 AM
From: TheLineMan	Respond to of 33268

Maybe I'm missing something. I can't say I read the documents carefully. But as far as I can tell the deal was for 1,572,738 shares for $6mil. Which is $3.81 a share. The warrants were freebies. If I'm wrong I beg your pardon - just direct me to the paragraph. RACE have until July 12th to file the registration before additional penalties kick in. Will Scogin make the deadline? What does that have to do with a meaty run up? Again I have to check but RACE was trading way in excess of this price when the deal was made.

To: Lawrence Burg who wrote (33173)	7/7/2000 4:23:07 AM
From: Dale Baker	Respond to of 33268

The product has been out there for a long time. I keep hearing how BT is evolving to fit in with whatever's hot in the communications world, but the bottom line is that no one has bought significant amounts of it yet. If they don't soon, the company goes under or keeps diluting existing shareholders to raise more money. I have shorted RACE seven times now for nice profits. Every time the story is out there about a big breakout and national commercial success for BT. The next time RACE spikes I will be there again. It's virtually free money. Good luck - but you would be better off in companies like BRZE and CAMP when they dip (I have them from 24 and 20 - took profits in CAMP the other day). They have products that customers are buying. Not just dreams and visions. BTW, the Yahoo board for RACE is total chaos - a typical Yahoo board. Investing based on that discussion is suicide IMHO.

To: Lawrence Burg who wrote (33173)	7/13/2000 3:39:10 AM
From: TheLineMan	Read Replies (1) \| Respond to of 33268

Lawrence I'm not sure if you read all the RACE Yahoo crap. I certainly don't but I posted some replies to your post. messages.yahoo.com You seem like a straight up guy and I wouldn't want you to be mislead. Do you know what Rule 457 is? Its to calculate the registration fee. Most companies use the words: "Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(c) under the Securities Act." RACE didn't I don't know why - do you? Rule 457(c): Where securities are to be offered at prices computed upon the basis of fluctuating market prices, the registration fee is to be calculated upon the basis of the price of securities of the same class, as follows: either the average of the high and low prices reported in the consolidated reporting system (for exchange traded securities and last sale reported over-the-counter securities) or the average of the bid and asked price (for other over-the-counter securities) as of a specified date within 5 business days prior to the date of filing the registration statement." Basically the price is for the calculation of the registration fee only. If you get into the meat of the S-3 you'll see it was indeed for just a little over $3.80 June 12, 2000, we completed a private placement of 1,572,738 shares of our common stock and warrants to purchase 471,822 shares of our common stock to six accredited investors: Cranshire Capital, L.P., Keyway Investments Ltd.,Lionhart Investments Ltd., EURAM Cap Strat. "A" Fund Limited, ICN Capital Ltd., and G-Bar Limited Partnership. The aggregate price of the securities was $6,000,000. In connection with the private placement, we entered into a securities purchase agreement and a registration rights agreement with the six investors. The following table summarizes the number of shares and warrants issued and the purchase price paid." But don't worry you were right that the price was calculated over a period and averaged out. Otherwise RACE wouldn't be able to invoke 457(c). The problem is they don't state the period. I think they will have to file an ammendment and they have until October to get it effective without incurring penalties (and Mr Skalla wasn't the best either). Wonder if I'll get a fee from RACE for my legal help? One more item in the S-3. Another bummer of a 10k if no significant sales eh? "The VocalWare products have not yet been and may never be widely accepted in the market. We can not be assured that we will establish a market for VocalWare products or establish our credibility in that market. We have a limited number of customers for our products and a loss of a key customer or a reduction or delay in orders from the customer could materially and adversely affect operating results. In addition, although we have not yet recorded significant revenue from our VocalWare products, we are currently attempting to market them to large corporations, as well as to smaller businesses." I didn't post this on Yahoo, but it seems that if RACE needs to do another share deal then the investors from the last placement will get in at less than $5.5. The way I understand it even if RACE hits the touted targets of $75 or $134 these guys are set up to get in at $5.5 if RACE needs cash.