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Microcap & Penny Stocks : HeartSoft Incorporated (HTSF) -- Ignore unavailable to you. Want to Upgrade?

To: Albert Martin who wrote (730)	8/11/1998 7:20:00 PM
From: Richard L. Williams	Read Replies (2) \| Respond to of 1781

UPDATE FOR HEARTSOFT INVESTORS: I elected to take up Ben's offer and become the HeartSoft "hitman." I took up about 1/2 hour of the CEO's time today, but I came away with a treasure lode of information for our efforts. Strap in, folks! Where to begin? How's this: This past quarters numbers will be out on August 17th or 18th. Ben couldn't tell me much about how they will look, natch, but we won't run screaming in fear, methinks. Sales are going well, although Thinkology's late in-the-year introduction kept it from being available during the peak buying period for schools. This has not stopped Thinkology from being successful, though. Ben told me that HeartSoft has a major problem in that it is really undercapitalized for the task of introducing as significant a product as Thinkology to the world. To tackle this problem, Ben explained how he has lined up a favorable financing deal that involves issuing convertible preferred stock. This stock would be locked up for 30 months, and could not affect more than 20% of the common. Bottom line here is that 20% of the company would be sold for $4,000,000 in financing, which is the sort of cash that HeartSoft needs to get off the ground. What this capital will do is allow HeartSoft to become a major contender in the children's software field. 80% of the funds would be used to expand the sales division of HeartSoft to cover the 14 states that spend 80% of the technology funds in schools. This would lead to the expected exponential increase in sales Ben talked about on STNN. Ben will soon be interviewing a man that approached HeartSoft for a job. This man, with $150,000, started the technology division for a major publishing firm--a division that now brings in $25mm in revenues. He now wants to work for HeartSoft! The HeartSoft sales department's expansion is still going according to plan. The biggest hangup here is the lack of ready funds, which of course, will be solved with the aforementioned financing. The 4th CD in the Thinkology series will be out in three weeks or so. While it will be ready to go, HeartSoft's concept is to release the CD's in trilogies, which means that #4 will wait for #'s 5 and 6 before the world gets to see them. Development time for each CD is averaging 90 days. On the personnel front, Ben has found so much of his time being taken up with the various day-in and day-out problems of a rapidly expanding company that he has turned over the job of company president, on a temporary basis, to his brother Matthew, who has been involved with HeartSoft from the beginning. Ben is also actively seeking a CFO for HeartSoft, and there are other jobs that will be filled as the company grows. We discussed the current state of the stock's price. Ben is of the opinion that HeartSoft's stock has been subject to manipulation, as it is trading in a way it never has in the company's existence. The party that may be behind this is known. On the plus side, Ben has been in talks with a wealthy friendly party that may be inclined to buy large blocks of HeartSoft stock in the near future. No guarantees here, it might happen, it might not. That about covers it--as you can see, my hand was kept busy with taking notes, as Ben and I sure covered a lot of ground in our 1/2 hour on the phone! If anybody has any questions, please feel free to send them to my e-mail address so that I may cover them in my next call, in two weeks or less. By the way--Ben has some pretty interesting news that we agreed he would post here. Cheers! Rick