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

To: KZAP who wrote (2977)	3/9/1998 10:35:00 AM
From: emergencyops	Read Replies (3) \| Respond to of 18444

Watch out guys. If true, 50M sounds more like a buy out than a strategic alliance IMO. There must be some serious strings attached. A private placement to fund the 50M. The article says cash already infused in ZULU, but goes on to say there will be a private placement in mid March to fund it. Is the money there or not and what is the dilution if any? Scary! Gary

To: KZAP who wrote (2977)	3/9/1998 11:45:00 AM
From: slipnsip	Read Replies (2) \| Respond to of 18444

"A $50 million private placement of convertible prefered shares will begin in mid-March to provide the financial strength to position the group as the premier Internet Solutions Provider. " This is a pure equity private placement. That means ZULU gave away/printed $50 million of prefered stock possibly at or below current market level (price of stock). They need to disclose how and when convertible. If it is convertible at $5 a share great. If convertible at $.15 per share, then everyone who is long just got screwed. $50 million converted at $1 per share translates into another 50 million outstanding shares, on top of the 100 million previously authorized. Thats 50% dilution for the last example.........