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Technology Stocks : Coyote Network Systems (CYOE), Mixing It Up, IP and ATM -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (62)	12/11/1998 6:13:00 AM
From: Q.	Read Replies (1) \| Respond to of 360

Given that Comdisco has registered to sell shares in the S-3, there appears to be a bizarre financing relationship between CYOE and Comdisco. CYOE gave Comdisco a lot of warrants, which I list below. This makes it appear that CYOE is actually paying Comdisco to finance leases of CYOE's equipment, and moreover, it is not paying in cash, but with warrants. This is not the first time Fiedler has done funny things with 'selling' switches. In the Diana days, I remember he 'sold' equipment to an ISP without receiving any payment. Apparently the sales were really just trials, financed by Diana, in order to get PR to pump up the stock price. Here's the excerpt from the S-3 regarding Comdisco's warrants: Represents shares of Common Stock which will be received by the Selling Stockholder upon exercise of outstanding warrants issued to the Selling Stockholder on March 26, 1998, June 26, 1998 and September 30, 1998. The warrants issued on March 26, 1998 entitle the Selling Stockholder to purchase 40,750 shares at an exercise price of $3.81 per share, the warrants issued on June 26, 1998 entitle the Selling Stockholder to purchase 78,750 shares at an exercise price of $8.33 per share and the warrants issued on September 30, 1998 entitle the Selling Stockholder to purchase 73,500 shares at an exercise price of $8.10 per share. The Company has entered into a general sale agreement with Comdisco, Inc., a third-party leasing company, who in turn leases the equipment to the Company's end-user customers.