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Gold/Mining/Energy : American International Petroleum Corp -- Ignore unavailable to you. Want to Upgrade?

To: CMon who wrote (4760)	11/6/1997 5:24:00 PM
From: Laserbones	Respond to of 11888

Shhhhhhh.......the PFCs might hear you. <eom>

To: CMon who wrote (4760)	11/6/1997 5:30:00 PM
From: lmw	Respond to of 11888

CMon Agree this isn't the "best" way to borrow funds. It would seem that AIPN needed funds fast and badly. Else way borrow structured this way? It would seem that this is "stop gap" financing. I am long and have been bullish on AIPN. But I believe that the road to the payday in AIPN is not going to be the shortest distance between two points. lmw

To: CMon who wrote (4760)	11/6/1997 5:43:00 PM
From: DRRISK	Read Replies (1) \| Respond to of 11888

Cmon, ***The transaction was financed by significant institutional investors in the form of one-year 14% convertible Notes which are redeemable by the company on April 15, 1998. After April 15, 1998 the Notes are convertible according to a set formula. However, if the company's stock exceeds $8.33/share, the Notes may be convertible after Feb. 12, 1998 at $6.25/share. In connection with the placement of the Notes, the company issued three year warrants to purchase approximately 1,700,000 shares of the company's common stock at $6.25 per share.***** This is the best financing this company has recieved in five years. The deal is to continue to finance this period until AIPN can get married to a Major. The reality of running this company now is that Dr.Faris needs to keep the balls in the air to supply the refinery with crude,and to pay Wavetech. These are hard tasks to accomplish with no revenues. I would like to see you go borrow from the Hunts under these terms. It is not ideal but the loan from the Hunts is very bullish IMO and clearly raises the bar on AIPN. We are all too anxious for the pot of gold. The market clearly favored this news and I think the decks are almost clear for the final negotiations on JV. We now need the final piece to clear which is the Kasak royalty news. I believe that AIPN is amazingly in control considering the pressure they must be feeling on this deal. There is no mention of the RegS debentures from OCT. and I wonder if this vehicle replaces them or is in addition? Less than one year ago Dr.Faris was issuing RegS debentures for .50cents so lets get some perspective! DrRisk long and steady as she goes

To: CMon who wrote (4760)	11/6/1997 8:10:00 PM
From: Juan Dominguez	Read Replies (5) \| Respond to of 11888

I'll tell you why this was an important financing and why a JV IS, and I repeat, IS around the corner. The single most important reason why they need financing now is to be in the best possible bargaining stance with a potential JV partner. If a potential JV partner sees that they have little or no cash and CASH STARVED, they will believe the they can have their way in the negotiations. The will figure that AIPN does not have the staying power to survive and therefore, assume that AIPN will be more inclined to sign a quick "cheapy" deal. They think they possibly can get in a deal at less than the going rate for possible reserves, because of AIPN's desparate financial position. However, if AIPN showed that they have plenty of cash(now over $13M) in the bank, a potential JV partner will see that they are not "desparate" and will have to negotiate fairly knowing they don't have the upper hand in the negotiations. Furthermore, now that Wavetech has finished their analysis and interpretation of Soviet data and that AIPN has begun to talk to numerous potential partners the stakes are higher and the bidding will escalate. IMHO, AIPN was probably given an inadaquate offer from a potential JV partner and decided to take steps in order to shift the bargaining power over to their side. Now that they have showed all potential Jv partners that they are financially healthy, have over $13M in the bank and have a fully operational refinery that will produce cash flow, the negotiating time and power will be on AIPN's side. I quicker agreement should consequently, come about. Regards to all Juan