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Microcap & Penny Stocks : Green Oasis Environmental, Inc. (GRNO) -- Ignore unavailable to you. Want to Upgrade?

To: Scott Ferguson who wrote (9877)	9/18/1998 8:52:00 AM
From: Charles A. King	Read Replies (1) \| Respond to of 13091

Scott, I can answer a couple of your questions. The suit by the SEC against GRNO was settled. Message 5619414 The injunction was signed by Judge Duffy on August 21, 1998, 17 months after the SEC began its investigation. As far as the use of the word "sales" is concerned, I hope the new law firm is more careful than Gambrell & Stolz and uses a term like "orders booked" to distinguish initiation of orders from the word "sales" to denote plants shipped. Charles

To: Scott Ferguson who wrote (9877)	9/18/1998 9:54:00 AM
From: Ferick	Respond to of 13091

aim for the kneecaps.

To: Scott Ferguson who wrote (9877)	9/18/1998 1:22:00 PM
From: Norman H. Hostetler	Read Replies (1) \| Respond to of 13091

Scott, I'll give you my thoughts about a company that at the moment certainly seems to be running on its last fumes: 1) I believe that GRNO these days consists of Bill, Pete, and the GRNO office. We all wish it also had a well-stocked bank account. 2) As to who would buy a million dollar piece of machinery from a company like this, well--that's the million dollar question, isn't it? Obviously, this is no easy sales job for Bill, especially without a continuously operating processor to demonstrate the viability of the process. I personally believe that an operating processor would allay any last fears of fraud regarding the machinery itself and thus make more likely the willingness of some company to risk the purchase. Once a machine has been sold, installed, and proven to perform as promised, a lot of people will be getting into line. By the way, a 1000 gph unit sells for $2.7 million dollars. 3) I believe I more accurately should have said that the receipt of the initial 30% downpayment would constitute execution of a sales _contract_. I apologize for being somewhat misleading. From an accounting point of view, the downpayment is "sales income," under one sub-branch or another ("contractual payments for work in progress," set off with liabilities, expenses, etc., or whatever). As I have previously indicated, the problem of determining when a sale is recognized as a sale has many possible legal answers. Bill now definitely understands the importance of distinguishing between a non-binding "letter of intent to purchase," even one accompanied by some money (such as the RecOil [now Ambix Technologies] agreement), and a binding sales contract. So he now believes that the receipt of the 30% downpayment money constitutes the point at which public notice of the "sale" contract should be made. 4) An easy answer to a difficult problem--what will keep the company going is a cash infusion, minimally at least enough to turn on the processor and keep it running, preferably at least enough to upgrade the Charleston unit to the 1000 gph machine that they intend to manufacture, and ideally enough to permit purchase of inventory for construction of plants and initial investment in additional plants for installation under GRNO operation elsewhere in the US. 5) Obviously, time is of the essence. The company cannot keep afloat forever without any income; at some point, they will have to close their doors and file for permanent bankruptcy. I know that there are always on-going efforts to solve the money problem, one way or another, which have recently been aided by the EPA permit and the settlement with the SEC. While I agree with you that the odds of survival are not good, I would also not view the situation as hopeless yet. =+=+=Norm