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Gold/Mining/Energy : NP Energy Cp New -- Ignore unavailable to you. Want to Upgrade?

To: bully who wrote (15348)	3/21/1999 1:01:00 PM
From: J. Nelson	Read Replies (2) \| Respond to of 22810

Tks; Bully: Would a loan from a officer or friend for stock be a Material Change? Say the firm needs some operating cash of heck I, don't know let's use $50,000.00 for operations of day to day stuff. So the firm makes a private loan at $50,000.00 with intrest at say .12% (it's hard to get money at a bank so ya have to pay more) the loan is for 6 months with a demand on it. Now the stock is at .025 to .035 a share so the party gets about 1.2 million shares to hold aginst the loan in free trading stock. So far I, think many firms would do this type of a deal "BB" or not. It's just a loan you know. Now let's take it down the road a bit. 3 months later the stock moves up to .045 cents a share and our holder of the loan sell's the stock. Waits for about a month and buy's back the issued shares so at the end of the 6 months there returned to the company at payment date for the $50,000 loan. OOOOPs something happens and the firm cannot make the payment in this example so the holder says ok. I'll just sell my stock at this time the firm needs more cash and asked for a new loan from the person (Mr. Big Bucks) he says shure here is $50,000 yet I want the stock at a lower price say .02 Cents per share as you did not keep your promise on the last deal. The business says ok. here are the shares. Now we follow down the road and find the stock moves up to .055 to .06 and (our Mr. Big Bucks) sells again all of the stock the first batch and the second. The time of payment comes due and the company cannot buy back the shares and needs a new loan. So they say well (Mr. Big Bucks ) Can you give us one more loan and we will discount the shares to you old friend to .017 for say $100,000 cash. at 15% intrest for 90 days.??? Mr. Big Bucks opens up his heart and says ok. one more time yet your starting to cost me a lot of my time in all of this dealing. Mr. Big Bucks now covers all the stock he O)OOOOOOps I forgot last time when he dumped the shares he shorted evey sell with a matched amount of 1 for 1 so he's short about 2 million shares at this time. get the point? I wonder if this can go on as I, have read about it on other firms trading stock and just question if it's a material change taking place? Can you explain what would be of material that should be reported*? I'm not saying this happend or could ever take place with npec, yet for our information we should know that it could with other firms.