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Technology Stocks : Avalon Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: george eberting who wrote (830)	1/15/1999 10:59:00 AM
From: OFW	Respond to of 1530

If the ratio is set at 1:8, why does it even matter? (eom)

To: george eberting who wrote (830)	1/15/1999 11:16:00 AM
From: equalizzer	Read Replies (1) \| Respond to of 1530

The value being paid is as follows. All current shareholders of AVAL are receiving a share of AHS valued at $2. The value being assigned to the current AVAL share is $0.25 cents. In addition AHS has agreed to assume and settle all old debt including any back salaries etc as appropriate. The cost of warrant call has to be paid by someone and as AVAL has no real revenue it has to be assumed the two current management teams have this under control. Therefore it is safe to assume that the value assigned to AVAL is Shareholder value is $0.25 plus the equivalent value of debt and restructuring cost. To Madeleine. The usual arrangement would be for those tendering free trading stock to have their shares included in some form in an IPO. These arrangements are normally made with the investment bankers. I would assume that the actual structure will be made clear at any shareholder meeting and in subsequent shareholder disclosure documents. Keep in mind that it is significant that management has elected to hold the fairness hearing in California. This state is very pro-active in defending shareholder, and in particular, minority shareholder rights. The management of AHS seems to be intent on creating a business that incorporates but is not based upon the AVAL product. They also have strong accounting and legal representation. The future for any company starting fresh, and entering a potential IPO, as distinct from a shell company on the Bulletin Board has to be encouraging. If the new business model provides a better model that enables us all to see revenues and profits then we all win. There are many factors to be considered, short, medium and long term.