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Gold/Mining/Energy : Arconenergy, Inc. (Long Term Investors and Fundamentals) -- Ignore unavailable to you. Want to Upgrade?

To: rinkerj who wrote (98)	2/9/1998 8:11:00 PM
From: Ga Bard	Respond to of 1757

Also please understand in the answers I wrote down, because it was what was stated, the term the convertible debentures. This type of financing has two flaws to it. Now one they have to be register with the SEC with takes at least 9 months plus because everyone including the buyers generally get nailed for issueing them. This type of financing generally does not work to the company's advantage and merely shoots themselves in the foot. However Mr. Fisher did not make this statement concerning this type of financing. Again the term was used and I would have been altering what I was told if I took it out. The company assured me there are no convertible debentures existing nor is there any intent of doing that type of financing. There are much easier and simplier ways to do the financing with the perfer that is available with the restricted shares existing and possibly the C and D type stock with time and sell restrictions. NO common is going to be issued to harm the float. I have talked to the company today on this subject to double check what I am posting on this matter and subject. I was assured that after researching that terminology that what I have just stated is correct. Again the 'C' and 'D' maybe an option to raise the funds with time and sell restricitons but no more than absolutely neccessary. If you read the entire conversations if some acquistions come through with the connections to cornerstone etc. There will be no need for any if minimal perfered much less the horrible convertible debentures. But it was said and I did post it and I have clarified it. If this should happen we will know it long before it ever happens. Hope this helps Please post what you feel for everyone to see including good and bad. We want proper and solid DD not selective. Gary

To: rinkerj who wrote (98)	2/9/1998 8:24:00 PM
From: Ga Bard	Read Replies (1) \| Respond to of 1757

ALso the company can issued perfer and avoid interest payment all together that generally are associated with this type of financing. subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before holders of subordinated debentures can receive a settlement. Frequently, this settlement amounts to relatively little. Because of the risk involved, the issuers have to pay relatively high interest rates in order to sell these securities to investors. Many issues of these debentures include a sweetener such as the right to exchange the securities for shares of common stock. The sweeteners are included so that interest rates on the subordinated debentures can be reduced below the level that would be required without them. Subordinated debentures without the conversion option appeal to risk-oriented investors seeking high current yields. convertible security A security that, at the option of the holder, may be exchanged for another asset, generally a fixed number of shares of common stock. Convertible issues frequently are fixed-income securities such as debentures and preferred stock. Their prices are influenced by changes in interest rates and the values of the assets into which they may be exchanged. Convertible securities vary in price to a greater degree than straight debt but to a lesser degree than the underlying asset. Please note that in the proper sense of the wording issuing preferred share is a convertible same as the B and the A. Just trying to explain that some terminology is so misunderstood on the internet. Gary