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Microcap & Penny Stocks : THE OZONE COMPANY! (OZON) -- Ignore unavailable to you. Want to Upgrade?

To: Nite-Man who wrote (3544)	10/27/1998 5:24:00 PM
From: Michael Paul Langley	Read Replies (1) \| Respond to of 4356

Interesting to see how much dilution will ultimately occur with this convertible preferred offering. 17,205,582 OZON shares outstanding before the offering. Since the recent share price has been between 1/16 and 5/32 (approx) during the offering (see below statement)we can expect to see some significant dilution (curently,the ceiling is 55,000,000 in authorized shares). For each $500,000 in proceeds raised (I don't know the total they are seeking)we may possibly expect to see 4 million additional shares oustanding (nearly 25% dilution from current levels). I am using 5/32 (average 80% of this)as an example price with which they might be converted. I hope the price goes up before they convert to lessen the dilution to current shareholders. On September 10, 1998 the board of directors authorized issuance of Series "C" convertible preferred stock with a $.01 par value and a stated value of $1,000 per share. These shares are convertible into common shares at 70% to 90% of the average stock price. The shares provide for payment of cumulative dividends at 10% annually, paid in stock. The offering was opened on October 1, 1998. The Company is currently in process of closing this offering. Despite the additional funds that may be raised from the issuance of preferred stock, currently in progress, the Company under it's present plan of operations, does not have sufficient liquidity and capital resources to continue in operation through February 28, 2000.