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Microcap & Penny Stocks : OWLD OneWorld Systems -- Ignore unavailable to you. Want to Upgrade?

To: Richard Jurek who wrote (1399)	4/12/1998 9:39:00 AM
From: X-Ray Man	Read Replies (1) \| Respond to of 1648

Moreover, even if I completely agreed with his argument that it made sense for the modem business to be merged with a larger modem manufacturer (which, in fact, does make sense), it does not answer why the stockholders were not given equity in that merged business. If the company was split, and the greater half merged with another to make the main business viable, rightly the stock- holders should have a share in both businesses or in the newly merged main enterprise. That might be in the shareholders best interest. It is in the interest of the corporate officers NOT to do this, in order to force the current shareholders to essentially finance the high-risk venture that remains. They have presented no evidence that this is in the shareholder's interest. In fact, I believe the shareholders have a legitimate complaint to take to the SEC, since the BOD is charged to protect shareholder equity, and this deal essentially places all of that equity at significantly greater risk. I still maintain the best solution would have been a mixed deal with BOCA, providing $5million in BOCA shares to current shareholders, and $5million cash to current venture which shareholders will own, and if the current venture needs more financing, then that should be raised by a future IPO or borrowing or other venture financing. What the BOD has done essentially is taken advantage of the current shareholders, who have held GVIL based on belief in prospects of current product line, and forced them to give up equity in that product line to provide venture capital for the remaining activities. JMO