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Microcap & Penny Stocks : ProNetLink...PNLK...Click here to enter -- Ignore unavailable to you. Want to Upgrade?

To: Ted M who wrote (39887)	4/4/2001 11:24:36 PM
From: Ice Cube	Read Replies (4) \| Respond to of 40688

yes, but Waveland won't do the deal unless they get free trading stock, their role in this is about low risk. No one buys 144 paper on the street unless you really chop it, it starts at a 50% chop and gets worse. No one in their right mind likes 144 at near market prices. Why would they. All the risk and no rewards, if they liked the deal they would have done a private placement into the company at a discount to the market, say 20%. But an equity line is a method for a company to raise money that really came about when the SEC changed the 504 rules. Company's had to find a way to raise money and now there are only a few ways it is done 1) private placement into a company 2) convertable financing 3) warrant financing 4) equity lines The Private placement market is dry right now, the convertable area is pretty nasty, warrant financing is dry and then good 'ol equity lines. It's basically all they could do. The only way for them to stay alive is to raise money in the market and this is the method they have chosen to do it. Now, they have to bring in buying in the stock so they can sell this stock to them. How will they do that? They could go to a small bucket shop and get them to cold call people and sell stock. They could hire promoters to hype the stock. But, the bottom line is they need to get people to buy PNLK so they can sell the stock to them and then take some for themselves and then the rest goes to PNLK.