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


To: george eberting who wrote (4761)4/10/1998 11:28:00 PM
From: James Harold Alton  Respond to of 19331
 
George, As I understand things, the IB will allow DCI to minimize the number of shares of stock used in acquisitions. I don't believe the LOI's on Payless and Edge involved any Common at all, but the Fla. acquisition does. Bottom line is that, so long as bringing an acquisition aboard adds more value per share (as calculated on the increased number of shares if that is the case) the increase in the number of shares due to the acquisition becomes irrelevant.

James



To: george eberting who wrote (4761)4/10/1998 11:35:00 PM
From: David Bartkowski  Respond to of 19331
 
" Won't we seen an increase in the 22 million number every time we use stock as part of a new acquisition? George E."

George,
Yes if Joe is issuing stock for the acquisitions, we will see an increase in the possible number of shares outstanding. However, these options/warrants will be tied into profitability. These shares will be issued according to the amount of earnings the company is bringing in. Therefore, earnings will increase faster than stock and no dillution of earnings will occur. Hope that clarifies things.

DAVE