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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Juli who wrote (6859)	7/19/1998 11:18:00 PM
From: James Harold Alton	Read Replies (1) \| Respond to of 19331

Juli, I appreciate your concerns and would encourage you to do some research and contact the company with regards to your questions. I am not sure that I would agree with you that issuing the preferred was the companies worst option for raising cash. Yes the initial cost is high, but consider that with this option there are not ongoing debt obligations to service and that assets of the company are not tied up (making it a mess I would imagine playing the M/A game) as collateral. Also, consider that if the group that Joe placed preferred with 2 years ago had sold those shares, do you think that we would have used them again? If we can assume that this group has held all of the shares from the Series C, then the position that they have is so large that they could not hit the exits if they wanted to, since they would crush our share price. And unlike the CC group, this group didn't get those shares by paying for a .20 option, they still have a lot to lose if they hurt our price. Bruce's explanation makes sense to me and agrees with what I learned about this earlier. You seem to be implying that there are better options for DCI to raise cash, what are they? Let us know if you learn more about this, just consider taking the open minded approach that Joe Murphy is taking what he feels are his best options and that we do not have all of the facts to be able to judge him on that point. In other words, research first, panic second. (G) James

To: Juli who wrote (6859)	7/20/1998 6:57:00 AM
From: Todd Miller	Respond to of 19331

I know nothing about financing, convertibles, preferred shares, Series whatever, but is it coincidental that our share price dropped about 15% on June 26 (since then, stuck at this level) and the fact that the Series E are convertible at 80% of the stock price for the 5 trading days preceding their conversion? Could the holders of these Series E be our mysterious seller who "doesn't care" (or by law, is unable to) convert/sell at another price? Just trying to learn, thanks for any help. Todd

To: Juli who wrote (6859)	7/20/1998 9:00:00 AM
From: Art Vandelay	Read Replies (2) \| Respond to of 19331

Hi Juli, Well Series F was issued after or around the same time as the last dividend and after the first dividend and buyback. From DCI's 10K: In April, 1998 the Company issued $3,000,000 of Series F 8% non -voting convertible preferred shares . The shares are convertible to common stock 90 days from the issue date at the lesser of 75% of the average closing bid price of the common stock for the ten days prior to conversion or $4. The securities must be converted into common shares within two years of the issue date. In connection with this offering 50,000 warrants exercisable at $1.56 for a period of five years from the issue date were granted to these preferred shareholders and 50,000 warrants, at the same terms, were granted to certain individuals as finder fees for the placement of the preferred shares with investors. I do not know enough about this type of financing to know how bad this is. (if it is bad at all) but I am looking into it further AV