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Technology Stocks : Zitel-ZITL What's Happening -- Ignore unavailable to you. Want to Upgrade?

To: Michael who wrote (14817)	3/31/1998 8:38:00 PM
From: Greg M.	Read Replies (1) \| Respond to of 18263

Michael, good point concerning financing. From ZITL's 10-Q, dated February 12, 1998: "The Company's $3.0 million secured bank line of credit expired on January 31, 1998. The Company is in the process of completing an agreement pursuant to the commitment offer letter, executed on February 5, 1998, for a $3.0 million secured bank line of credit Management believes that the Company will be able to meet its cash requirements for the remainder of the fiscal year from cash on hand, other working capital, and cash flow from operations augmented by a bank line of credit." Chances are that ZITL was never able meet the terms of the "commitment offer letter" for the $3M line of credit. It would be highly irregular for this co. to secure a line of credit without issuing a press release. No line of credit, negative cash flow from operations, no other new financing, no contracts, just some evaporating cash on hand. What's in store? with ZITL's prospects, it's highly dilutive financing and/or bankruptcy. Regards, Greg