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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Jack of All Trades who wrote (12890)	10/25/2005 6:45:57 PM
From: Sergio H	Respond to of 23958

Jeff, Merriman gave up his options in order not to further dilute the stock and bought shares in the open market. This represents a greater investment than just the amount spent on buying shares. Also, look at the financing for the alliance with Ascend. The market seems inclined to price the stock accordingly: <On May 4, 2005, MCF Corporation entered into a strategic alliance with Ascend Services Ltd., or Ascend. In conjunction with this alliance, Ascend has entered into a stock purchase agreement with the Company. Ascend has also engaged the Company as an investment advisor for its short-term high credit-quality fixed income portfolio. The Company issued 1,078,749 shares of its common stock and Ascend has issued an unsecured promissory note payable to the Company in the amount of $1.5 million. The shares will be held initially in escrow. Upon Ascend achieving specified milestones, the 1,078,749 shares of common stock will be released from escrow in three installments of 359,583 shares and provided to Ascend. Upon satisfaction of the conditions specified in the escrow agreement and simultaneous with the release of the related stock certificates, the related amount of the promissory note shall become effective and start accruing interest. The promissory note accrues interest at 10% per annum and matures on February 28, 2006. On May 15, 2005, the Company released the first installment of 359,583 shares of common stock to Ascend while the related promissory note with a face value of $500,000 became effective. The Company recorded the promissory note as a reduction of stockholders’ equity until Ascend repays the note. Interest income from the note amounted to $6,000 during the three months ended June 30, 2005. >