Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : PKGP (Packaging Plus) -- Ignore unavailable to you. Want to Upgrade?

To: taxgun who wrote (20)	1/24/1998 9:53:00 AM
From: Zebra 365	Respond to of 4783

Can you say "SHORT SQUEEZE"? These offshore Regulation S debenture holders usually sell short against their conversion rights, get all their original money back and then acquire controlling interest in the company buy converting the remainder of their unshorted position at a very low price. If conversion of the debentures is suspended, the offshore holders will have to cover these short positions by buying the stock back on the open market, Ouch!! Not a happy time in the Caymans, (where many of these deals originate.) For another recent example of this see ZITL (Zitel). Packaging Plus Services, Inc. Suspends Conversions Of Offshore Debentures PLAINVIEW, N.Y., Jan. 16 /PRNewswire/ -- Packaging Plus Services, Inc. (OTC Bulletin Board: PKGP) announced today that it has reason to believe that several holders of the offshore convertible debentures it issued during the summer of 1997, which convert into PKGP's common stock, have breached the terms of the Subscription Agreements related to these debentures. As a result, PKGP has suspended all conversions of the debentures and is further investigating this matter with outside counsel. PKGP is an integrated specialty business services company. PKGP owns and operates APAC, a nationwide association of independent postal centers. The association provides access to business services and logistically convenient and cost effective delivery of goods worldwide. PKGP's other subsidiaries are engaged in advertising, logistical services, franchising and concierge services. SOURCE Packaging Plus Services, Inc.

To: taxgun who wrote (20)	1/24/1998 9:56:00 AM
From: Zebra 365	Respond to of 4783

Packaging Plus to Challenge Debenture Conversions PLAINVIEW, N.Y., Jan. 22 /PRNewswire/ -- Packaging Plus Services, Inc. (OTC Bulletin Board: PKGP) announced today that it has received numerous inquiries from shareholders requesting elaboration of its press release dated January 16, 1998 regarding its suspension of the conversion of previously issued debentures. During the summer of 1997, Packaging Plus Services, Inc. ("PKGP") issued debentures to several offshore investors pursuant to Regulation S under the Securities Act of 1933, as amended, through Select Capital Advisors, a Miami based funding company. PKGP has since terminated its relationship with Select whose Chairman is currently being prosecuted by the State of Florida, for fraud, grand theft and racketeering. The debentures converted into common shares of PKGP, on defined terms, or alternately, at PKGP's discretion, can be fully redeemed by the company in cash with an interest premium. The company has reason to believe that several of the debenture holders have breached the terms of the debentures and accordingly, has suspended all conversions. To date, the company has received requests to issue shares in respect of conversions substantially in excess of its outstanding shares. The company intends to vigorously enforce its rights under the financing and debenture agreement and is currently contemplating, if necessary, obtaining new financing to redeem the debentures. PKGP is an integrated specialty business services Company. It owns and operates APAC, a nationwide, association of independent postal centers. The association provides access to business services and logistically convenient and cost effective delivery of goods worldwide. PKGP's other subsidiaries are engaged in advertising, logistical services, franchising and concierge services. SOURCE Packaging Plus Services, Inc.

To: taxgun who wrote (20)	1/24/1998 10:07:00 AM
From: Zebra 365	Respond to of 4783

Packaging Plus Responds to Share Price Volatility PLAINVIEW, N.Y., Jan. 23 /PRNewswire/ -- Packaging Plus Services, Inc. (OTC Bulletin Board: PKGP) announced today that it has received numerous inquiries from shareholders regarding the recent volatility in its share price. The company believes that the recent decline in share price is primarily the result of substantial short selling by debenture holders, who have requested conversion of their outstanding debentures in common shares of Packaging. To date, the company has received requests for the conversion of over 16,000,000 million, free trading, common shares. However, the company has been advised by its legal counsel, that many of the allegedly "offshore" debenture holders have breached the terms of the debenture agreements and accordingly, has terminated the conversion rights under the agreements. Further, a large majority of such share conversions would have, if issued, represented control block positions, subject to SEC resale restrictions, and would not constitute free trading shares. The debenture agreements provided for the conversion of the debentures into common shares of Packaging, on defined terms, or alternately, at Packaging's discretion, full redemption by way of cash with an interest premium. The company intends to vigorously enforce its rights under the financing and debenture agreements and is currently contemplating, if necessary, obtaining new financing to redeem the debentures. Packaging currently has 9,900,000 million shares issued and outstanding, of which 3,700,000 are restricted shares. PKGP is an integrated specialty business services company. It owns and operates APAC, a nationwide association of independent postal centers. The association provides access to business services and logistically convenient and cost effective delivery of goods worldwide. PKGP's other subsidiaries are engaged in advertising, logistical services, franchising and concierge services. SOURCE Packaging Plus Services, Inc.

To: taxgun who wrote (20)	1/24/1998 10:08:00 AM
From: Zebra 365	Read Replies (2) \| Respond to of 4783

Packaging Plus<PKGP.OB> blames fall on short-sales PLAINVIEW, N.Y., Jan 23 (Reuters) - Packaging Plus Services Inc said Friday that it believes the recent fall in its share price was the result of substantial selling by debt holders, who have requested conversion of their debt into common stock. The company said that, to date, it had received requests for conversion of more than $16 million free trading common shares. Packaging Plus said it has been advised by legal counsel that many of the allegedly "offshore" debenture holders have breached the terms of the debenture agreements and accordingly, has terminated the conversion rights under the agreements. The company said it intends to vigorously enforce its rights under the financing and debenture agreements and is currently contemplating, if necessary, obtaining new financing to redeem the debentures. If issued, a large majority of such share conversions would have represented control block positions, subject to U.S. Securities and Exchange Commission resale restrictions, and would not constitute free trading shares, it said. The debenture agreements allow for the conversion of the debentures into common shares of Packaging Plus, on the defined terms, or alternately, it is at the company's discretion to fully redeem the debt in cash with an interest premium. Packaging said it now has 9.9 million shares issued and outstanding, of which 3.7 million are restricted shares. The company made the comments in a statement it issued after receiving numerous inquiries from shareholders regarding the recent volatility in its share price. Packaging Plus stock was up $0.09 to $0.25 at midday Friday. The stock's 52-week low was around $0.04, its high $2.875. At the Close on Friday, 1/23/98: PKGP - PACKAGING PLUS SVCS INC Exchange: OTC Issue Last Price: 0.29 at 16:01 Change: Up 0.13 (+81.25%) High: 0.33 at 14:12 Low: 0.18 at 9:32 Open: 0.19 Previous Close: 0.16 on 1/22 Volume: 2,773,400 (Nearly HALF the outstanding, unrestricted shares) If the request for conversion of 16,000,000 shares indicates the short interest, then each unrestricted share has almost three holders. ie. has been borrowed and shorted twice. This is not a fundamental play, but has the earmarks of a tremendous short squeeze to $1.50 to $2.00 as the float contracts with panicked short covering. Zebra