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Microcap & Penny Stocks : Amazon Natural (AZNT) -- Ignore unavailable to you. Want to Upgrade?

To: bmart who wrote (902)	8/23/1998 10:13:00 AM
From: Janice Shell	Read Replies (1) \| Respond to of 26163

Dr. Lorrichio is a man of the sciences, the SEC are not scientists. His intellectual properties are of the sciences, the SEC are not scientists. No indeed, the SEC are Men of the Regulatory Agencies, and it would appear that they have some problem with Loricchio's claims. The Men of the Regulatory Agencies possess magic powers over BB stocks exceeding those of the Indians of the Amazon...

To: bmart who wrote (902)	8/23/1998 11:56:00 PM
From: wonk	Read Replies (1) \| Respond to of 26163

bmart: Regarding the pending determination of the intellectual property rights to be afforded ABRACEL and Dr.Lorrichio, it appears you have already posted the substance of the answer here: exchange2000.com For completeness, the relevant text follows: 1. LICENSE GRANT (a) LICENSOR hereby grants USER a exclusive license, without the right to grant any sub-licenses, to use the unique products, licensed patents and all Know-How in the operation and to sale all products internationally. 3. REMUNERATION ... (b) Further, a minimum monthly payment of Eight Thousand US($8,000.00) Dollars, to be paid by ABRACEL U.S.A., LIMITED, will be guaranteed by AMAZON NATURAL TREASURES, INC., said amount to be paid by the 10th day of each month, for an initial period of five years, plus extensions, if necessary. sec.gov I am fear you have been misled if you truly believe the following: ...What the company has been diligently working with the SEC to ascertain is how to evaluate the value of an 'intellectual' property.... Once the SEC and the company arrive at how to make that evaluation, the financials will be audited and we will all be informed of that value.... exchange2000.com Quite frankly this is a settled point in accounting and finance. Assets are to be placed on the books at cost. The value of the intellectual property rights obtained by AZNT from ABRACEL is what AZNT paid in cash or committed to pay in cash for those rights, nothing more. If cash payments are to be made over time the generally accepted procedure for valuing this asset is to treat the cash payments as an annuity, discounting the payments to reflect the time value of money. Using a calculator or a simple spreadsheet function you can arrive at a basic answer. Doing a quick calculation, using a 15% discount rate the value of the rights would be posted on the books at approximately $336 thousand dollars. That's all. Quite frankly the controversy about valuation of this intangible asset is another significant danger signal - in addition to the concerns about the legality of this stock exchange / cancellation / redemption plan. It is quite common, and the SEC is on guard against it, for companies to attempt to overstate the value of their assets. The worst abuses are in regard to intangible assets. I await your findings tomorrow regarding the structure and legality of the proposed equity instruments. ww