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To: FlatTaxMan who wrote (6629)6/5/1998 5:01:00 PM
From: Scott H.  Read Replies (1) | Respond to of 8242
 
I had also thought of that possibility. If they do need more cash to grow the business, then I have no problem with them selling shares and pumping the proceeds back into the company, or re-couping some of their up front capital.

I would hope that you are right - that people wouldn't spend two years developing the concept and then cash out. But then again, who knows - if it looks like the subscriptions are not coming in as planned, the temptation to take the money and run is always there. I am not saying this will happen, just that we should consider the possibility that it might. It has happened with other companies - and the existing shareholders get burned as the stock price gets diluted.

One solution might be for them to re-restrict a portion of the shares and then cash in some of the others for their cash/marketing needs.