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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?


To: JOE MEDSKER who wrote (4000)3/27/1998 8:25:00 PM
From: Pr-Ac Man  Read Replies (1) | Respond to of 19331
 
The other thing I like about them is that they are structuring the acquisitions with leveraged money so Joe will not have to issue a lot of stock.

Joe:

Thanks so much for the report. Could you (or anyone) elaborate a bit on how the acquisitions with leveraged money take place??? Who puts up the money?? How is it repaid?? Somehow the equity has to come out of the company's hide, so if it's not in new shares what's the catch. And won't the use of leveraged money simply increase the company's debt which will eventually determine how much the future buyer is willing to pay. Aren't we just reducing the eventual purchase price for an increased "per share" price. Sorry for all the questions, but this strategy is new to me. And it's not clear how this will be a benefit. Thanks, as always.

PA