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Microcap & Penny Stocks : Zulu-tek, Inc. (ZULU) -- Ignore unavailable to you. Want to Upgrade?

To: slipnsip who wrote (1938)	2/26/1998 5:29:00 PM
From: D PARKER	Respond to of 18444

IPO vs SHELL (VERY simplified and MY OPINION ONLY) If you were able to look a little into the future and could see a new viable business model to make a lot of money, would you not be interested? There are two prominent methods of bringing this new business public, IPO and SHELL. The IPO method requires paying a venture capital bank (assuming they like the prospect) millions of dollars and hundreds of thousands of shares in the new public company. A prospectus is prepared and road show is scheduled for the next few months to HYPE the new company. There are many steps and many months of time to work through. This works, but is very costly. The SHELL method entails finding a public company that meets (or agrees to meet by reducing the amount of shares) the needs of the new management team and is essentially worthless, but is still in good standing in the public arena (maybe a family owned business or a research company). If the shareholders of the shell like the potential of the new company, an offer can be made to buy the shell for the future value of an agreed upon quantity of stock. It is just a matter of signing contracts and such. An offer is made to the shareholders of the shell and if it is accepted, the new management can begin business in a very short time period. This method can be very cost and time effective. Doubleclick chose the IPO method. Zulu-tek chose the SHELL method. Both are viable, just different methods of achieving the same ends. Again, this is very simplified and it is my opinion and should not be used for investment purposes, but it may give some of you insight into how NETZ was formed. Dave

To: slipnsip who wrote (1938)	2/26/1998 5:36:00 PM
From: I Am John Galt	Respond to of 18444

Check out post #1734 and see if that makes any sense. Matty Gregg

To: slipnsip who wrote (1938)	2/26/1998 6:16:00 PM
From: Mr. Jens Tingleff	Read Replies (1) \| Respond to of 18444

David, I think they did not pay for the company but took over debts.

To: slipnsip who wrote (1938)	2/26/1998 7:18:00 PM
From: BlackStar	Read Replies (3) \| Respond to of 18444

I don't understand the philosophy of buying a shell in an effort to go public.. They buy the shell with 30 or 40 million outstanding for next to nothing, fine. Why? If the company had no value before they aquired the shell, they have no value after. When a company goes public, they do it because the desire to get financing. Not to many companies going public at a 1/16 with any number of shares. it's getting late over here and I am not at home typing this so I'm going to do a little 'seat of the pants' explaining. I trust some kind soul(s) will correct my mistakes. Let's go back to the time when NETZ was just a twinkle in a few guys eyes. One of those guys was Tom Burgess and another was a British guy with deep pockets. [I never saw this disproved, interested in the scoop on this. Not that important to my story anyway.] These guys decide for some reason that web ads is a cool way to go and decides to go for it... As it happens Tom is a guy that starts up new companies and then moves on when the company is up and running. Fortunately he has a dormant shell from a prior project that can be used. Said and done, Tom 'turns on the juice and cuts the dmn thing loose', bringing Star Medical back to life. In the process the share structure needs some changes so among other things a reverse is made. This is the 500 to 1 folks! The resulting boiler plate shell has something in the neighborhood of 1 to 5 mil shares and is ready to be used. Name change to Netmaster, ticker change to NETZ, filed. Ready to rock, Netmaster starts aquiring companies, DoubleClick goes for the IPO, OtherChap falls out of a worm hole and the world gets hit over the head with the prospective excellence of web advertizing. The rest is history. Don't look now, but www.netmaster.com is updated with the real deal*! Everything works for me at least! From the opening 'TV-quality' showcase to the registration form! NETZ is still a partial unknown but, you got to admit, them fixing up their website goes a long way. Bolt you chairs to the floor because we're goin' ballistic (hopefully not only in my dreams) :) Tired but releived!