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Technology Stocks : Advanced Engine Technologies (AENG) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Cummings who wrote (2396)	12/15/1998 5:26:00 AM
From: 246810	Read Replies (1) \| Respond to of 3383

Greg, You are the man. What are the tests to be completed? Auric doesn't say it is imminent. He says the eventual 2 to 1 dilution of current shareholder's value is "beyond dispute." The wording of Note 1 of the financial statement (#reply-6727416) says it WILL happen if "certain" tests are completed. It certainly seems probable that the tests will be performed. What are they? NOTE 1. NATURE OF BUSINESS Advanced Engine Technologies, Inc. (the company), a subsidiary of OX2 Engine (Distribution) Ltd., was incorporated under the law of Colorado and began operation on September 23, 1996. The company was formed to acquire the rights to manufacture distribute and market an OX2 Engine combustion engine throughout the United States, Canada, and Mexico. On October 18, 1996 the Company entered into a contract with OX2 Engine (Distribution) Ltd., (OX2) a company incorporated in the Republic of Vanuatu, whereby the Company acquired the rights to manufacture, distribute and market the OX2 combustion engine. As part of this contract the Company issued 20,000,000 shares of its common stock and will issue an additional 19,000,000 upon the completion of certain tests. In addition, OX2 has the right to appoint two of the Company's three directors. As of June 30, 1998, OX2 owned approximately 62 percent of the Company's outstanding shares. Accordingly, the accompanying financial statements represent the separated financial statements of a subsidiary company. (Emphasis added) Harry and others say I have no financial smarts, and they may be right. Nevertheless, it looks to me that the owners of OX2 formed AENG and gave it distribution rights in exchange for 20 out of 32 (million shares). That is 62% as the statement states. If 1M were sold to the public and 600,000 went to an organizer, who got the other approx. 10M shares??????? Then AENG will give 19M more shares to OX2 later on. That will be 39 out of 51 +Shelby's shares or about 76% ownership of AENG by OX2, its parent. I may be wrong. I would appreciate comment from those competent to comment. 246810