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Microcap & Penny Stocks : Kaire Holdings - $0.50 stock- $3 to $4 Book Value -- Ignore unavailable to you. Want to Upgrade?

To: JP390 who wrote (268)	8/18/1998 6:34:00 PM
From: Redhook	Read Replies (2) \| Respond to of 1640

I was hoping the $280,000 was the original debt number, cause I would hate to have to wait for another 8,000,000 shares to be converted. So the dilution is almost done. Can't be more than $30,000 of debt left to convert. Do we have an estimate of how many shares will be outstanding and what the float will be after the remaining debt is converted? Thanks again Selfop and JP390 for all the work you have done. Much appreciated Redhook

To: JP390 who wrote (268)	8/19/1998 2:15:00 AM
From: Stephen Goldfarb	Read Replies (2) \| Respond to of 1640

John: My recollection, from someone's post, is that the original debt was around $700,000. If so, the remaining figure is about 40% of the original debt. No one has yet clearly explained the nature of the debt instrument. My understanding was that the debt holder could acquire shares at a discount to the market, and then sell into the market. Therefore, the number of shares left to be liquidated depends on the price. Obviously there is not much room left. The problem with the share price being so low is that more shares are created to liquidate each dollar of debt. Why an instrument would be written that yielded such substantial dilution is beyond me. I don't know if there is any typical share movement to be expected after a debt of this nature is liquidated. Obviously selling pressure is likely to result in lower share price, as has occurred. Buying pressure is expected to result in higher share price. Prices can go down and stay down. It depends. A comment on this BB, without explanation, was that major buying was expected. I assumed it meant that people close to the company would begin to accumulate shares in anticipation of the I.P.O. One can speculate whether there was forethought given to forcing share price lower in anticipation of later buying before the I.P.O. Steve