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 : Universal Medical Sytems (UMSI) -- Ignore unavailable to you. Want to Upgrade?

To: Wizard who wrote (1290)	3/12/1998 10:01:00 PM
From: GeneM	Read Replies (1) \| Respond to of 1672

The key word here is: "secured" debenture holders. What could the debentures be secured with? Certainly not the office fixtures or equipment in the building, the landlord is now holding all of that hostage. As for the rent: figure about 80,000 sq. ft. of prime office and warehouse space for about 8 months. Add to that back salaries, tangible property taxes and legal fees, plus what is owed to the accounting firm that has been doing the financials, and I think you will have eaten up a good part of the mil.. Wizard is right however: it is paramount to discover exactly who the debenture holders are before any personal decisions can be made. Also, just what they are secured with. Still, ask yourselves this: if you held secured debentures in this company, would you give up that security? I doubt it. Another thing you can count on: should this deal go through, you can almost bet that Baker and crew will no longer sit on the board. In answer to someone else's question: no, the stockholders have no vote in determining whether or not a reverse split should be done. Now, add up what we know: we now have (what amounts to) a letter of intent to provide a small finance package, from a company no one knows anything about; an unknown amount of money due to existing creditors, which will have to come off the top of any monies raised; and, if I'm not mistaken, a good portion of the revenue from the sale to Taiwan has already been paid. No thanks! About the only thing that might excite me somewhat would be a total buy-out of the company by someone with enough stability to see the whole thing through. GeneM