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Pastimes : Georgia Bard's Corner -- Ignore unavailable to you. Want to Upgrade?

To: K A Anderson who wrote (1492)	5/4/1998 8:21:00 PM
From: Ga Bard	Read Replies (2) \| Respond to of 9440

MIDL .... Here are the totals for calculating fully diluted shares from the 8-K plus the last transaction for Arcon minus the returned shares of New Departure: : 2,575,217 Common ( 1.6M insiders / 975,217 Free trading. ) 4,108,860 Dilution from Series A ( 117,396 ) 54K in MILDP Float 22,350,000 Dilution from Series B ( 149,000 issued to date ) ---------- 29,034,077 fully diluted common shares as of today MIDLP = preferred 'A' the other 63,396 are held by the company which are restricted for another year and 6 months before be able to convert. The 'B' are all insiders and have a 2 yr restriction before they can be converted (self imposed) THEN another 2 yr restriction before they can be traded after that. Again insiders and SEC rules and regulations apply. MIDLW are warrants that allows the holders to exercise I guess at anytime to purchase 1 share of common stock for 1 dollar, expiration 2001; Target - $2.50 or higher for ten trading days; After target is met company can recall all warrants for .05 cents I believe. Note: for every warrant exercised the company will get $1.00 for each share exercised and the warrant market is done away with. ME I am playing the warrants for momentum only. I have NO intention of exercising them. Can not guess on the dilution factor at all till the warrants are exercised. So in Oct of 1998 this year the MIDL float will dilute to the 2,575,217 plus 1,890,000 (54x35 MIDLP) = 4,465,217 minus the insiders 1,600,000 = 2,865,217 free trading float. No other dilution I know of till Oct 1999 which is where the other 63,396 preferred A converts which will dilute another 2,218860 making the float 6,684,077minus insiders 1.6M = 5,084,077 Free Trading in OCT 1999. Now one note is everyone is worried about the "B" converting. Well I doubt that because as Dan holds 65%. ALso they cannot be shorted against. Now if they convert and sell then some could buy controlling interest and right Now with Dan holding 65% of the B he has 96,850 x 150 = 14,527,500 that means someone would have to buy everry single share remaining in order to take control away from Dan. Hope this answers the questions I am getting' GB