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

To: Jeffrey_J who wrote (2995)	3/9/1998 11:39:00 AM
From: emergencyops	Read Replies (1) \| Respond to of 18444

Very clear. They ESVS will have to issue 8M+ additional shares at $6 1/4 to raise the cash. What is the impact on ZULU? What does ZULU give in return for this infusion?

To: Jeffrey_J who wrote (2995)	3/9/1998 11:57:00 AM
From: BlackStar	Read Replies (1) \| Respond to of 18444

Sounds pretty clear. Sound totally bogus to me... But maybe I am just stupid. ESVS has somehow already made an investment in NETZ. How much, with what kind of financial instrument and who benefits? From the ESVS release... A $50 million private placement of convertible preferred shares will begin in mid-March to provide the financial strength to position the group as the premier Internet Solutions Provider. ESVS will apparently use $50 mil worth of convertible preferred shares. How exactly? Will ESVS sell the shares to an offshore investor (a Reg S deal) and give the proceeds to NETZ? Or will NETZ buy $50 mil worth of debentures and then dump them, making a profit and effectively killing the ESVS stock price? I don't understand the hows, whys, and whats of this deal. According to newsalert ESVS has a Market Cap of a whopping $6.8 mil! Roughly one tenth of the $50 mil in debentures. With the information available to me I'd say that this deal doesn't mesh...