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Gold/Mining/Energy : Markatech - MKD (VSE) -- Ignore unavailable to you. Want to Upgrade?

To: Robert J. Mifsud who wrote (274)	8/6/1998 11:21:00 PM
From: Ted Kosokowsky	Respond to of 416

OK, I finally talked to Doug MacLean. Sorry Robert, it was before I read your suggestion about how the news was disseminated. I talked to Doug for about 5 minutes. When I expressed frustration at the lack of news lately, he said that he has been so involved with the deal that he got lost in the trees, and couldn't see the forest. I agreed with him. He said that he doesn't release news until there is something concrete, he will not issue news to say that something might happen. This last news was available because he just re-negotiated the non-consolidation with the other principles and had it vetted through the exchange. It looks like there was a hiccup and the other principles became more greedy because they don't have to earn as much net revenue before the shares are released from escrow. Looking back, last month it seemed everything was looking great, and I was expecting an August opening. Suddenly it went limp. The weakness was due to the fundraising for the convertible preferred. Doug said it was deterred by the lack of opinion on RRSP eligibility. Although they had investors lined up with money, they wouldn't commit until they knew how it was going to be handled in their RRSP. It took a month to get an opinion, and he said a favorable one was received at 1:00 local time. So now that the biggest barrier to raising funds is cleared, he expects everything to happen very quickly. They need to raise a minimum of $120,000 to get the business up, and they will raise the entire $500,000 if they can. He wouldn't tell me how much they have already raised, but he did say he had enough money to get the ball rolling which will make it easier to raise the rest. I talked to Laurie later, and he said some cheques were already received today. Doug wouldn't say much about a timeframe, but he expects a lot to physically happen during August. Maybe Sept 15 is realistic after all. Ted

To: Robert J. Mifsud who wrote (274)	8/6/1998 11:37:00 PM
From: Ted Kosokowsky	Respond to of 416

I also talked to Doug about the convertible preferred offering, and he said he would send me a copy of the prospectus if he could. It doesn't look bad. Judging by the news release it carries a 12% dividend (better than interest), and a 5% royalty overall. Apparently if the equipment runs at 1/3 capacity in the first year the royalty payment could be as much as 15% of your investment. That combined 30%+ doesn't sound bad at all for anyone needing income, although the minimum subscription is $10,000. If anyone is interested I'll try to get more information. If I get any good information about their business plan I'll try to interpret it into a financial projection and publish it. By the way, he also said they would be starting some better news promotion to generate more interest in the stock. Well, I certainly feel better today than I did 2 days ago. Ted