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Microcap & Penny Stocks : THE OZONE COMPANY! (OZON) -- Ignore unavailable to you. Want to Upgrade?

To: jane smith who wrote (1993)	12/20/1997 7:53:00 PM
From: Jeffrey L. Henken	Respond to of 4356

No reason to be concerned in my opinion Jane. The company has already arranged enough financing to continue operations for the immediate future. No doubt they will need more in the future but it will be readily available. In fact I may help myself in the next round of financing. Please read the following press release and realize this is more accurate and up to date material than that it the annual report: SALT LAKE CITY--(BW HealthWire)--Nov. 6, 1997--Cyclopss Corp. (NASDAQ:OZON) Thursday announced that it, together with First Financial Investment Securities Inc. (FFIS) has concluded a private placement of stock, the first round of which was for more than $1.2 million. Bryan Forman, chairman of Texas-based FFIS, said, ''This offering was concluded in five days and is the first of three rounds of financing for the company. We believe that the company is now well poised to take full advantage of new opportunities created within the food industry.'' Said Bill Stoddard, Cyclopss' president, ''This offering has enabled us to step-up our development of ozone-based equipment specifically engineered for the food industry, particularly produce, meat and poultry processing. Moreover, there are other financing mechanisms in place to raise additional capital, if and when required.'' Cyclopss Corp. is one of the nation's leading developers of ozone application processes and technologies for industry. Among its products is a food and commercial laundry decontamination system that kills micro-organisms such as E.coli, Listeria, Giardia, Cryptosporidum and a host of blood-born pathogens. Contact: Melinda Ballard, 512/894-0508 (for Cyclopss Corp.) fax: 512/858-7146

To: jane smith who wrote (1993)	12/20/1997 8:23:00 PM
From: GrnArrow	Read Replies (1) \| Respond to of 4356

Hi Jane, "...no assurance that the Company will be able to continue operations..." is normal annual report language for a company that is transitioning from a research and development stage to a marketing stage. In other words, they're not making a profit yet, so they need to raise capital to stay in operation. They can do this by issuing more stock or by taking on debt. Small companies usually can't get a bank to lend them money, so they usually do a private placement or sell convertible debentures or something like that. Most of the info in the annual report is relating the the fiscal year ended 2/28/97, so it's a bit dated. (The annual report is basically just the 10K, which has been available on EDGAR for months, the only new stuff in it is the letter to shareholders from the president on page 1.) The report is just making you aware that, as of the end of the fiscal year, they didn't have enough cash to continue operations for another year without finding more funding. As you'll see by reading page 1 of the report, the company did a private placement in November '97, so they have the capital to continue for now. Cyclopss will probably have to seek outside sources of capital again, but if the share price remains high, it shouldn't result in too much dilution. Hopefully the company will soon be operating at a profit (but not for a few more quarters at least, I'd guess), and then they won't need to raise additional capital. I think most people on this thread expect that to be the case, especially since Cyclopss has several diverse products which could each be big revenue generators. I hope my rambling helped. regards, Mike