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Technology Stocks : Zitel-ZITL What's Happening -- Ignore unavailable to you. Want to Upgrade?

To: White Shoes who wrote (16827)	7/26/1998 9:57:00 PM
From: White Shoes	Read Replies (1) \| Respond to of 18263

Zitel's secret business combination with Matridigm (from the 10-K): In November 1995, Zitel purchased 9.6 million shares of preferred stock of a company in the development stage, in exchange for $3.35 million in cash, $66 thousand in equipment and $150 thousand in future rent and administrative services. The technology rights include an exclusive license to manufacture and market certain products using proprietary technology of the company, subject to a royalty to the company. In July 1996, Zitel entered into an agreement to resell services of the company on a commission basis. The agreement also provides Zitel the exclusive right to create portable, on-site centers for the performance of services offered by the company for certain accounts in certain circumstances. During fiscal year 1997, the Company purchased an additional one million shares of preferred stock of the company in exchange for $2.0 million in cash. The Company also exercised an option to purchase 500 thousand shares of the company's common stock from a shareholder of the company for $300 thousand. Refer to "Note Receivable from Related Party" footnote. _________________ It's murky to me, but then, I live in Retard City.... In part ZITL appears to be a reseller of MD's technology. Does that mean resellers of ZITL's services are resellers of the reseller? I cannot wait for the first quarterly report which details the dollar amounts of ZITL's "commisssion" for reselling MAP2000...if they make it that far.