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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?

To: ztect who wrote (44124)	12/24/2000 9:00:18 PM
From: ztect	Respond to of 44908

RE: LT , response I received from PH. What follows is my email to Paul Henry below which is his response. I would have posted earlier, but while away I purposely didn't even check my email. > -----Original Message----- > From: ztect@hotmail.com > Sent: Wednesday, December 20, 2000 8:28 PM > To: phenry@tsig.com > Subject: LT loan & Conversion Shares > > Dear Paul, > > The below posts address my concerns regarding the LT loan. > > I'm especially concerned about the unnecessary > dilution created by conversion at these or lower > prices created partly by overall market conditions. > > Does the combined entity of Affinity plus the rest of TIGI > have any revenue to at least pay back a portion of the LT loan > to minimize this potential dilution? > > Any announcement of at least a partial payment IMO > would be very beneficial especially in these market conditions. > > Sincerely, > > Xxxxxx X Xxxxx > xxx-xxx-0000 > 000-xxx-xxxx (cell) > > > > > ======================================= > To: V$gas.Com who wrote (43930) > From: Bald Eagle Wednesday, Dec 20, 2000 5:46 PM ET > Reply # of 43941 > > > With 2.65 million bucks in convertibles, at today's close > they would get close to 10,000,000 million shares. That > would be less than 10% of the shares that are outstanding > now. Of course, if it drops to ten cents, it could turn > into 30 million or more. > > That still wouldn't bring them close to the 300,000,000 > that they are allowed to issue, so they wouldn't need a > reverse split to issue more shares > > ==================================== > > To: Bald Eagle who wrote (43932) > From: ztect Wednesday, Dec 20, 2000 6:08 PM ET > Reply #43941 of 43941 > Yep, that's the problem in addition to the > general overall condition of the markets. > Convert holders short using the bonds as collateral > to cover thus hedging against their own investment, > and in a down market > with the added burden of margin calls and tax selling > putting downward pressure on volume while increasing sells, > dilution gets worse with every decrease in price. > > When I read and understood the terms of the loan, > I said to myself okay that won't be too bad since the > price was then over $1.5 resulting in less than > 2 million conversion shares. However, as you've noted > with the decrease in share price the conversion shares > create substantially making dilution much more worrisome > and I, like you, have been recalculating the conversion > share number at these prices. > That's why I've noted on a couple prior occasions that > if Affinity has revenues as "news released" or GS has > any remaining cash it hasn't burned through, that any cash > or revenues be used to pay down, at least, a > portion of the LT debt. If even half of the debt were paid > off then that would be a creation at these levels of 5 > as oppose to 10 mil shares. > > Morover if such > payment were made, especially in conjunction > with a stabilization or bounce in the overall markets > with maybe another Coca Cola or other > corporate announcement, then > a change in the stocks price trend possibly could > occur with pressure being put on any short positions > further mitigating the dilutive impact caused by the > remaining balance of the LT note becoming > conversion shares. > > z =========================================== ======================================== From: Paul Henry To: ztect@hotmail.com Subject: RE: LT loan & Conversion Shares Date: Thu, 21 Dec 2000 09:29:51 -0500 Z, This is being worked on, but I am not at liberty to disclose. If we accomplish what we have been discussing with LT, I believe you and all shareholder will be very pleased with the result. Worst case, I believe we can get a substantial extension. Stay tuned. Paul Henry

To: ztect who wrote (44124)	12/24/2000 10:36:16 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 44908

ztect, because there is so little known, one should be even more careful. But from what is "known", TSIG before the formation of the new company had a burn rate of $5.4 MM for 9 months, which annualized gets this to $7.2 MM, more than the "original" forecast of $4 MM pretax profits originally expected from Affinity (when the forecast was $30 MM), which now, with a "forecast" of only $25 MM (and no longer any forecast of pre tax profits), makes the "current ongoing negative cash flow" at best $3.2 MM on a annual basis and possibly much more. Meaning, more funding will be required in a market environment not particularly friendly to any "dot.com. Sure, just as we are going to see some DCB in other dot.com, you should expect some here as well, but based on what is known, as you said, it is very difficult, IMHO, to make a case for a capitalization of $60 MM or so. If you add to that the technical picture of a stock in which there must be thousands of investors waiting to get out, even if only "half whole", you have yourself ample supply (not just the floorless) of stock on any mini rally. Zeev