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: emergencyops who wrote (2999)	3/9/1998 11:33:00 AM
From: tonto	Read Replies (2) \| Respond to of 18444

you see my point, this is a small company with little cash or assets. They need to clarify with their past record how they will be coming up with $50,000,000 based on their sales and worth.

To: emergencyops who wrote (2999)	3/9/1998 11:42:00 AM
From: tahoeman	Read Replies (2) \| Respond to of 18444

Someone must be providing $50 Million in exchange for Convertible Preferred Shares in ESVS. That's a lot of money...someone or company sees value in bringing these companies together... The Preferred Shares in ESVS are probably convertible under some stated provisions after a point in time for a certain number of Common Shares, and possibly at a certain guaranteed price. Thereby dilluting ESVS....which might not mean anything if the combined value of the companies is hugh... Of that $50 Million, I'm curious of how much will Zulu-tek be receiving, and under what arrangement.

To: emergencyops who wrote (2999)	3/9/1998 12:00:00 PM
From: SoSupream	Respond to of 18444

It looks as if Enhanced Services "has made a significant investment in ZULU-tek, Inc." (which really could be any dollar amount or even shares in ESVS), and "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." This additional capital that is raised is not necessarily going into NETZ. My take is that ESVS will issue pref shares of their co which will finance "the group" meaning the newly formed partnership. I would assume that the majority of $50m is going back into ESVS. If the hype about DoubleClick moved NETZ, this could be a good way for ESVS to raise additional capital for its own operations. I don't think in anyway that this means that NETZ is getting a $50m investment (or being bot out as some have suggested), although if the deal really goes through it should be nothing but positive for NETZ. SoSupream