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Microcap & Penny Stocks : Zulu-tek, Inc. (ZULU) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (7341)	5/22/1998 12:16:00 PM
From: CWIII	Read Replies (2) \| Respond to of 18444

Jon, Maybe it is off base maybe not. Can you please explain the following from ESVS 8-K. Specifically item number (c) where it talks about the "1998 Newly Authorize stock being converted to common stock. Thxs in advance for your comments. CWIII (a) COMMON STOCK. 1,131,474 shares are issued and outstanding as of the date hereof and 283,973 shares are reserved for issuance on exercise of outstanding options; (b) 8.6% PREFERRED. 8.6% Cumulative Preferred Stock ("8.6% Preferred") of which 15,000 shares are authorized and 8,000 shares are outstanding on the date hereof; and (c) 1998 PREFERRED. The newly authorized 1998 Preferred Stock (previously defined as the "1998 Preferred Stock") consisting of 1,000,000 shares, par value $3.00, to be issued in connection with the transactions contemplated hereby and which shares shall be convertible, solely at the option of ENHANCED into shares of Enhanced Common Stock on the basis of 2.772 shares of Common Stock for each one share of 1998 Preferred Stock, subject to adjustment in the event of any stock splits, stock dividend, reclassifications or other capital transactions, as applicable, and only after receipt of stockholder approval at a meeting duly called for such purposes, for which proxy materials are provided to each stockholder in accordance with the NASDAQ Rules and the requirements of the Securities & Exchange Commission (the "SEC").

To: Jon Tara who wrote (7341)	5/22/1998 3:01:00 PM
From: CWIII	Read Replies (3) \| Respond to of 18444

Jon, It appears to me if ESVS wanted to do a 1:10 or a 1:5 stock split all the have to do is issue either 5,000,000 or 10,000,000 shares of stock. Let's see 50M outstanding shares of ZULU to either 10M or 5M ESVS seems to be a 1 for 10 or a 1 for 5 stock split to me. I think the 1 for 10 is more likely but hope for 1 for 5. According to their 8-K they will convert 1,000,000 of their preferred stock to common stock at a rate of 2.772 common to one preferred stock. That number can also be adjusted if a stock split occur etc, etc. Doesn't seem to unrealistic to me. Input welcomed Jon. CWIII