To: CatLady who wrote (2536 ) 5/18/1998 11:20:00 PM From: jhild Read Replies (2) | Respond to
Well there is one thing that we can see here to keep in mind with this current Press Release. Since the date of this agreement is May 19, we can look for 1.5M shares entering the market anytime after July 4th, which is the 45 day minimum waiting period for conversion of these shares into CSHK common. This will probably represent an increase in the number of shares in the float of around 30% come July 4th. Happy Independence Day.. . . as sole consideration for the acquisition of the exclusive license. In addition, EHI has agreed to assume a $250,000 promissory note which the exclusive license is subject to in lieu of the previously agreed upon cash payments to Merced, Inc. only consideration in the granting of the license. As long as you don't count this additional consideration of a promissary note collateralized by the license itself. As though Merced were actually loaning 11th Hour this $250,000 without receiving it as a consideration in the first place. I suspect that the IR person that wrote that was just not being terribly careful. What is described is a deferred payment schedule, despite the wording. That this structure as described was developed by the company's lawyer for some reason is a little puzzling. There is not likely any tax benefit to how the IRS will see this, so why even begin to describe it in this convoluted fashion?
