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

To: taxgun who wrote (40400)	1/26/1999 12:56:00 AM
From: BuzzVA	Respond to of 41046

Did you notice Frank cancelled his 100K rule 144 submission? See the footnotes on his updated message. :~)

To: taxgun who wrote (40400)	1/26/1999 9:52:00 AM
From: Bruce Hoyt	Respond to of 41046

JP, yes they have done several small FNet private placements the past 2 1/2 years. This is another small one with only 2 million shares on the block. They have not said why but IMO it could be bridge money to continue expansion until a June/July IPO or it could be money needed to meet minimum asset requirements for NASDAQ Small Cap listing at IPO. Besides the other requirements for an initial public offering you need net tangible assets of $4 million or market cap of $50 million or net income of $750k in latest fiscal year or 2 out the past three years. They have been pretty quiet about the FNet revenues so far but I doubt we have hit the $750k mark yet. So my guess is they need the latest PP money sitting in the bank to show the $4 million minimum hard assets. Overall a lot of shares issued (about 30 million) after they do a 4 million share IPO but the good news is that 20 million shares will be held by FTEL & Chairman Frank so only 10 million will be in the float. Bruce