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

To: Jon Tara who wrote (4056)	3/17/1998 12:29:00 PM
From: BlackStar	Read Replies (1) \| Respond to of 18444

So, if want to really cook up a grand scheme... Um, so you're saying that the would be off shore VCs would short NETZ and then dump their shares into ESVS? Um, ah, naw... AFAIK Reg S works like this: - Company sells debenture to be converted at, say, 20% discount to going market price at date of conversion. A minimum holding period of 45 to 90 days is specified. - Right before the set period expires the VCs start shorting the stock lower. Usually through connections and against the block of shares they will get in the conversion. A temporary naked shorting if you will. The lower price means that the VCs get more shares. Usually more than they shorted. - Then the VCs get the stock hyped and dumps what they have left. - If the debenture is payed for with promissory notes the VCs don't have to pay for the debenture on 'beforehand'. They can do their thing and pay the seller (Reg S issuer) when they are done and have taken home their profit. ESVS and NETZ are still two seperate entities finacially. Please correct me if I am wrong.