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Microcap & Penny Stocks : MIDL .... A Real Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: Snodog who wrote (2242)	7/10/1998 1:57:00 AM
From: Kurt N	Respond to of 7039

I'd be a happy camper, even if it meant giving up the 10% dividend on the MIDLP mainly due to the circumstances that would have to happen in order for it not to be paid. There is a clause in the previous 10-k's, that requires a dividend to be paid on the preferred if certain conditions on Net Income AND Common stock price are not met for the fiscal year ending June 30th. Net Income requirement ($450k pre-tax earnings) clearly not met. That leaves the stock price requirement which probably will not be met. The common stock must trade above $2.50 for 20 consecutive days before August 15th. Stock must reach $2.50 by July 20th in order to have the 20 days. If it doesn't in combination with the income requirement then a 10% dividend on MIDLP must be paid. Kurt

To: Snodog who wrote (2242)	7/10/1998 6:23:00 AM
From: Ga Bard	Respond to of 7039

From the 10K SEC filings: then the Company will declare a dividend on each share of Series A Preferred Stock of one-tenth share of Series A Preferred Stock and five Series A Warrants. The Company will declare a similar dividend on the Series A Preferred Stock unless the Common Stock trades above $2.50 per share for 20 consecutive days after August 14, 1997, but before August 15, 1998, and the Company fails to have pre-tax earnings of $450,000, exclusive of extraordinary and non-recurring items. I do not know if that is going to happen or not because the trust gives it to the shareholders so they have got to get another acquistion to meet those conditions or pay the 10% dividend penalty. GB