Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Sideware Systems - SYD.u/V, SDWSF -- Ignore unavailable to you. Want to Upgrade?

To: dave anderson who wrote (2994)	5/14/1998 11:22:00 AM
From: Harmattan	Respond to of 6076

Hi Dave, It is my understanding that an Exchange Offering Prospectus (EOP) is a filing by a company to an exchange requesting restricted shares to be allowed to be freely traded. The preliminary EOP under consideration is for the conversion of special warrants into units and includes but is not limited to a private placement that went to insiders at considerably higher prices. Check out the definition of "units". EOP's can be expensive to carry (ie. lawyers fees, accounting fees, maybe exchange fees, etc.) Possibly this withdrawl is little more than the company trimming its cash flow. But if you follow the EOP/Private Placement trail backwards into last year you will see insiders buying into private placements knowing their intention was to file an EOP so those restricted shares would become free trading at an earlier date than according to the restrictions of the PP. Some of the shares (of insiders) in the EOP were at .80 and .92 in the second year. As this EOP has been withdrawn, one logical conclusion would be insiders do no anticipate the price appreciating to those prices in the short term (IMHO). This withdrawl of filing by insiders (or possibly insisted on by the VSE) is not a vote of confidence (again IMHO) In answer to your thoughts: this withdrawl does not necessarily mean X number of shares issued. But it does mean that X number of shares do not come free trading earlier than they were originally intended to. ghunk

To: dave anderson who wrote (2994)	5/14/1998 5:00:00 PM
From: Harmattan	Read Replies (1) \| Respond to of 6076

Dave, To clarify, in my previous post I did not intend to be negative. It is entirely possible that both the original filing of the EOP and subsequent recent withdrawl of filing is perceived by the management as aligned with the better interests of the company or at the least, benign in motive within the context of constantly changing circumstances. However, its always good to be aware of possible meanings. Either way, it probably won't directly affect the stock price. I see its effect as removing a bit of the forward looking premium that might be reflected in the price as we approach the New York dog and pony. In other words, IMO they maybe added a couple bricks to the wall of worry that the price must climb in the future. But hey, what's "another brick in the wall" when we have TNT in our backpacks. We just need someone to bring us a fuse (announce a deal with numbers). In addition, there are many events coming up very shortly that are potentially hugely positive. With smart marketing (without the need to hype) this could be a whole new ball of wax. still long and strong, ghunk