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Gold/Mining/Energy : Sideware Systems - SYD.u/V, SDWSF -- Ignore unavailable to you. Want to Upgrade?

To: Clark Kent who wrote (2637)	2/1/1998 6:55:00 PM
From: Gator	Read Replies (1) \| Respond to of 6076

Stock Fox's AGM Update found at Stockhouse: Stock Fox Belated AGM Report (Corrected HTML) 2/1/98 13:17 60402 Apologies to all for the lateness of this post, but due to a heavy involvement in KRY (and recent excitement thereof), there were some delays in getting this report onto the forum. FWIW, murrayj and I worked together to get this done. Voting: All resolutions were passed quickly and without fanfare. In fact, the only individuals who bothered to raise their hand to vote were the directors sitting in the audience. These resolutions included appointing the company's auditor, fixing the number of directors at five, the election of those five directors, granting of stock options, payment of monies to Grant Sutherland, and the name change to "SIDEWARE SYSTEMS INC." Afterwards, there was an extended Q & A period which provided numerous insights into Sideware's past, present, and future. All information was obtained from either Grant Sutherland or Owen Jones and any errors in interpretation are the fault of the authors. IBM/Lotus: Discussions are on a broader scale than in previous times. Dr. Bean is the principle reason for this shift as Dr. Bean is assuming greater importance while Net Notions' significance is declining. Grant Sutherland and Owen Jones: Grant invested $400,000 in Sept of 97 and both directors each own approximately 3 million shares/warrants/options apiece. Grant Sutherland worked for two years without pay to dispense with the approximately 20(?) lawsuits facing the company and has whittled the caseload down negligible levels. Three Major Corporate Objectives: 1. Sign a commercial agreement with IBM/Lotus/Sun. The present focus is on a Java-language agreement. 2. Raise 20 million in equity financing. Preliminary discussions have been held and a tentative agreement is in place pending a deal with 1. above. 3. Obtain a TSE listing. Sideware does not currently meet the TSE listing requirements but will qualify when 1. is accomplished. An unnamed brokerage firm has agreed to sponsor Sideware and is presently performing their due diligence on the company's prospects. Sideware will be in a position to obtain a listing after 1. is signed. Net Notions: Has been ready for Lotus for four months, but Lotus has shifted its interest in other directions. Sideware is attempting to pressure Lotus into a deal but may have to go elsewhere if unable to sign an agreement. Lotus Domino approached Sideware in the first place, BTW. Microsoft: Recently approached Sideware but talks are not ongoing because of the agreement with IBM/Lotus. Patents: The patent for Dr. Bean is very strong. The patent for Net Notions is not as strong but Sideware will sue anyone they feel is infringing upon their technology and the threat of a lawsuit will deter most companies. Jones insists that they are the leaders in concurrent technology. Electronic Storefront: Sideware feels they are on the leading edge with their storefront. They have been approached by a couple of mid-sized firms to sell their product through the Sideware storefront. As an example of the coming e-commerce, Jones mentioned that Egghead Software has now closed all their retail stores and is now selling only through the Internet. Cash: Sideware currently has $2.2 million with no outstanding debts. At the present burn rate this will allow them to operate for 12 months without further financing. The maximum salary at Sideware is $5,000/month, which explains the use of stock options to attract good people into the company. Employees: They currently employ 20 individuals and envision that this will increase to 100 when they sign an agreement with IBM/Lotus. When asked if Sideware could survive/succeed without a Lotus deal, Jones said yes, but it would be difficult and they would likely pursue a different market. General Thoughts and Feelings: Overall, we were impressed with Grant Sutherland and Owen Jones. There is no doubt in our minds that they are hard-working, capable businessmen who are aggressive and talented enough to take this company to the next level. murrayj feels a little uneasy with Jones' comment about "pressuring Lotus to sign a deal", which to him signifies some reluctance to go forward on Lotus' part. On the other hand, Lotus is notorious for dragging its feet and Jones may be speaking only of the need to drive home a deal at the earliest opportunity. It is not our impression that there is anything of imminent significance in the company's immediate future. Having said that, we feel the stock will do very well if Sideware can complete the deals they are pursuing within the next few months. At current prices, the upside is very large and could top 1000% during this calendar year. The downside is perhaps 50% (on the unwelcome assumption that no important deals can be signed). We feel that the likelihood of the company completely disintegrating is low, as GS and OJ have done a phenomenal job in taking Sideware to its current level of achievement. They are more than capable of continuing to build excellent shareholder value. At current levels I (Damon) am a buyer of JOT stock on the basis of the positive information obtained at the AGM. Must wait for some KRY $$$ to come rolling in first, but that's another Odyssey in itself. :-)) In the interests of open disclosure, both Murray and I are already shareholders in Sideware and hence we have a vested interest in the company. Sincerely, Damon and Murray. >>>>>>>>>>>>>>>>> Later...Gator