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Strategies & Market Trends : Drillbits & Bottlerockets -- Ignore unavailable to you. Want to Upgrade?

To: Don Pueblo who wrote (13911)	6/4/2001 10:38:18 PM
From: MulhollandDrive	Respond to of 15481

Champagne??? Might as well.... :) It seems young Mr. Peel met a delightful single serving friend on a flight back from San Fran and during their getting to know one another, he found out that she was an employee for Rare Medium...This is a very nasty story about the management& preferred shareholders raping the common shareholders and I will post what I think is the best description (courtesy Yahoo) here...(his single serving friend is not a happy camper to say the least) 4R's 100 MILLION DOLLAR HEIST. by: mainebeforedawn (51/Perham, Maine (Aroostook Co) 05/19/01 08:33 pm EDT Msg: 72620 of 73425 Folks- RRRR gave MTNT $50 million, a so-called loan, solely so MTNT could swing this (advertised as done) deal where the RRRR execs that own preferred stock could get back the $50 million free and clear of obligations to common stock holders. RRRR also over paid MTNT for services for the past six months. The $50 million loan was IPO money, your money, whether or not you bought the IPO, or traded to buy those shares the IPO issued. The PR says, MTNT will absorb the loss of this loan! What? Because MTNT is merging with RRRR, the loan originator?!!!! I guess MTNT is willing to forget about a $50 million dollar loan THEY OWE! Imagine that! The effect of this flim-flam was to take money from the control and obligation of common stock shareholders, those that put up the IPO money in the first place, and deliver it directly into the hands of the preferred stock shareholders, those that paid $0 for their shares when the company was set up. Preferred stock was given to company originators at the signing of the IPO. This heist simply indicates perferred stock holders simply couldn't stand to see any more of it slip out of their grasp trying to build a company, so they decided to steal it from the common stock shareholders. RRRR preferred stock holders have stolen what is left of the IPO money for themselves, period. They paid nothing for their shares, but spent the last several months trying to figure out how to move that money out of the common stock holder's control and exclusively into their own. Well, they've done it. AND, now they can buy enough of RRRR common stock shares to pass their theft right through a vote of the shareholders at halved and soon-to-be quartered valuations. What a heist! $50,000,000 And MTNT was able to help them pull it off for the issuance of a worthless (or soon to be worthless) special class of preferred MTNT stock. Where is this less-than-a-buck special preferred stock going to trade? For MTNT's efforts they received their own consideration, a few million, and the empty husk of what was once RRRR. Yup. Read the deal. RRRR preferred shareholders are free and clear of anything to do with EITHER RRRR or MTNT under the agreement, and they have gotten the $50 million in cash and liquid stock, but they chose to have nothing to do with EITHER RRRR or MTNT in what is termed a merger. Don't call a lawyer. Call the cops. This was outright theft. Grand larceny on a grand scale. This flim-flam really carries the concept of GREED IS GOOD to a new height. And, don't think for a second that the management at MTNT is any less scurrilous than the 4R managment team. These guys all hang together, act alike and are up to no good for investors. They're in it for themselves. Period. IF there is a future for this stock, it will only come because these scoundrels figure out a way to steal more by its use. You should be ashamed to own it, and by so doing, lending credibility to the con game that is going on here. -Maine