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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: TraderGreg who wrote (14071)	4/27/1998 5:33:00 PM
From: Freddie Forte	Read Replies (1) \| Respond to of 27968

If Famh touches the line of credit, shares will be issued to the borrower. I forget the calculation, but, it's based on Famh's price during a specific period of time.

To: TraderGreg who wrote (14071)	4/27/1998 6:00:00 PM
From: Buster	Respond to of 27968

TraderGreg, In my previous correspondence with Ira he stated that the LOC(Line of Credit) was backed by some form of company stock...warrents, convertible, etc. Here is portion of the press release describing the LOC. " NEW YORK, Feb. 24 /PRNewswire/ -- Firamada Inc. (BB: FAMH) has obtained a line of credit through an equity investment in the amount of 12 million US dollars through Bristol Asset Management of Los Angeles, CA. This investment group has given Firamada Inc. the opportunity to form additional strategic alliances to move the company though the millennium." I am not sure if this really is a typical "line of credit" agreement. I view it more like a private placement with no fixed timeframe. If Fahm draws on the LOC, Fahm must issue equity to the investment group. I doubt Fahm can give the money back for the return of their equity. We really do not know what the agreement is between the investment group and Fahm so...? At least this is what my impression is of this LOC/equity deal. This could be how the extra shares have been added to the Outstanding share count. Ira could have used the LOC. Anybody have anything to add or a correction to my info? the LOC agreement happened in Feb. 97 so we will not see it on the 1997 financials. Buster