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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL) -- Ignore unavailable to you. Want to Upgrade?

To: William Harvey who wrote (39375)	11/22/1998 1:18:00 PM
From: Al Krasberg	Read Replies (1) \| Respond to of 41046

WH - WOW! That sounds illegal as hell, if it is indeed happening! I'll check with the company and see if they will say anything.

To: William Harvey who wrote (39375)	11/22/1998 6:35:00 PM
From: William Harvey	Read Replies (1) \| Respond to of 41046

Here is the information cited in my earlier post in regard to a precedent established for the removal of FNet shares from the FTEL ownership. It's taken from the Form S-1/A for FRANKLIN TELECOMMUNICATIONS CORP filed on Oct 9, 1998: www4.edgar-online.com "During the year ended June 30, 1996, the Company transferred 4,200,000 of its shares of FNet to its CEO, Frank W. Peters, and to Colin Patterson, who was a director of the Company at the time, in cancellation of notes payable and for consulting services. Management of the Company valued the FNet shares at $.015 per share, based upon the book value of FNet at the time of the transaction. The issuance of these shares caused the Company's ownership percentage of FNet to decrease from 100% to 79% as of June 30, 1996." _____________________________________________________________________ Taken from the same document, the stage is set whereby shareholder equity could reap a tidy profit if someone paid 'any positive number' for FNet (as Frank did in 1996). "FNet, on a stand-alone basis, had a shareholders' deficit. As a result, Franklin's investment in FNet had a negative carrying value. The increase in capitalization of FNet resulting from the sale of 1,949,500 shares of common stock to outside investors benefited Franklin in that it reduced the negative carrying value of Franklin's investment in FNet. Accordingly, Franklin has accounted for the change in its proportionate share of FNet's equity resulting from the issuance of stock to outside investors as an increase in shareholders' equity and a reduction in minority interest liability in the consolidated financial statements." I submit these paragraphs with absence of malice. WH