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To: campe who wrote (2106)8/12/1998 6:44:00 PM
From: Stephen Goldfarb  Read Replies (1) | Respond to of 3046
 
I received the mailing from "Underdog" and also read a number of posts. It is an interesting situation. However, I found nothing that indicated how the company was to finance its high cost ventures, both film/video making and additional acquisitions. One production was estimated to cost $75 million, and another film, as I recall, $10 million. Where are those funds to come from? If they are borrowed funds, that is primary debt on the company. If the ventures do not meet expectations, then that creates a loss. A budgeted projection of over $75 million may put the company at considerable risk, depending on the fund raising mechanism. Another issue needing clarification is what kind of share dilution may be anticipated? Its typical to read about companies that have reported potential. Its very hard to get the whole picture. Comments welcome.

Steve