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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange) -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (2467)	5/14/1998 5:49:00 PM
From: Duncan	Read Replies (1) \| Respond to of 2841

Ron: <<...$100 million bond issue that will both erase all existing debts and end the dilution factor...>> Your assumption is a bit aggressive. Yes, the bond deal will certainly straighten out their various forms of debt, but future dilution is a very real issue. Following is from DEF14/A (DEFINITIVE PROXY OF AMERICAN ECO CORPORATION, first amendment) filed 4/21/98. Companies don't file these proxy statement and then seek approval if they don't intend to pursue such measures. "APPROVAL OF PRIVATE PLACEMENTS [PROPOSAL 5] ------------------------------ In order for the Corporation to raise funds to expand its business services, the Corporation may require further funding which would be raised pursuant to one or more private placements. Shareholders are being asked to approve a resolution authorizing the Board to enter into one or more private placements in the 12 month period following the Meeting to issue additional securities to subscribers who are at arm's length to the Corporation." Furthermore, the filing goes on to state, "Such future private placements would not result in additional shares of the Corporation being issued in an amount exceeding the current number of issued and outstanding shares (in the aggregate) of the Corporation." Long term this may be a healthy move for ECO, but don't expect too many buyers on the open market when the inside institutions will be buying through a private placement deal...albeit arms length. Duncan