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

To: Bruce A. Thompson who wrote (137)	2/19/1999 12:35:00 AM
From: Q.	Respond to of 360

re terms of the loan, the comment about pending deals in the 10Q said . The Company is currently in the process of seeking to raise funds through debt and equity financing and if this process is successful, management believes that it will provide adequate liquidity to meet the Company's planned capital and operating requirements through March 31, 1999. Thereafter, the Company's operations will need to be funded either with funds generated through operations or with additional debt or equity financing. This makes it pretty clear that they expected to raise funds in the near future not only by selling debt, but also by selling equity. Either the loan that they just announced has an equity component that they did not disclose in the news release (my guess) or there will be another deal coming up very soon that will be equity. Long term they have to do equity deals to stay afloat. Cashflow to make payments and assets to secure loans simply aren't there in the latest financial statements.