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Microcap & Penny Stocks : 1st Net Technologies ( FNTT ) -- Ignore unavailable to you. Want to Upgrade?

To: EyeDrMike who wrote (437)	3/21/1999 2:29:00 PM
From: Janice Shell	Respond to of 1827

Here's the relevant press release. One really could wish for more, ah, detailed information... Thursday March 11, 11:10 am Eastern Time Company Press Release 1st Net Technologies Inc. Announces Completion of $1,000,000 Private Placement Offering SAN DIEGO--(BUSINESS WIRE)--March 11, 1999--1st Net Technologies Inc. (OTCBB:FNTT) has just announced the completion of their $1,000,000 private placement offering. The company offered 200,000 units; priced at $5.00; consisting of two shares of 12% convertible preferred stock priced at $2.50 per share and a $5.00 purchase warrant convertible into one share of common stock. ''The completion of this offering provides us with the necessary financing to complete and implement the initial launch of one of our new products, which we will announce in the coming months. It also enables us to hire additional staff to meet the needs of our rapidly growing Client Services Division,'' said Cliff Smith, president of 1st Net Technologies. About 1st Net Technologies Inc.: 1st Net delivers innovative services for publicly traded companies, and high net worth investors. -- Services for publicly traded companies include Corporate Due Diligence Web Sites, Custom Database Systems Management, Online I/R Road Shows and E-Marketing. -- Services for high net worth investors include Online Financial Information Resources including Newsletters and Investment Opportunity Profiling. 1st Net is also an Internet products company specializing in enabling core technologies. These breakthrough technologies support a new paradigm pioneered by 1st Net called ''Content Based Routing and Delivery'' to control and monitor information, telephony and video services on one platform. 1st Net Technologies is traded on the OTC: Bulletin Board under the symbol ''FNTT.'' Note: News releases and other information on 1st Net Technologies Inc. can be accessed on the Internet at 1stnettech.com. The foregoing press release may include numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited ''safe harbor'' for certain forward-looking statements. Forward-looking statements in this press release relating to product development, business prospects and development of a commercial market for technological advances are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with new business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason. Contact: 1st Net Technologies Inc. Jeff Chatfield, 619/675-4449 Jeff1@1stnettech.com www.1stnettech.com 1stnettech.com;

To: EyeDrMike who wrote (437)	3/21/1999 2:34:00 PM
From: Jay Fisk	Read Replies (3) \| Respond to of 1827

If it's a floating convert, let's do the math with this example ! A company with a negative business outlook issues $10 million of convertible preferred stock to a group of 25 investors. After a 45-day holding period, the preferred shares are convertible into common stock, whenever an investor chooses, at a conversion price that is 90% of market price at the time of conversion. At the time of issuance, the company's common stock is selling for $10 a share. One group of investors immediately begins short-selling the company's common stock. The stock's short position soars, and the selling activity drives its stock price down. Other preferred stockholders panic and convert, selling their common shares and driving the stock price down even further. The short-sellers cover their positions as the stock price descends, pocketing the difference between the current price and the price at the time they initiated the sale. The stock price hits $1. The short-sellers cease their selling activity and convert their preferred shares at 90% of the market price, or $.90. They cover any remaining short positions with newly converted common stock. In addition to the profits from their short sales in a declining market, the investors earn an automatic $.10 profit per share that they sell upon conversion. If they hold on to their investments and the company recovers, they will own a large percentage of its outstanding shares. From last paragraph of: cfonet.com <Edit: With a $5 floor on the warrants, above example doesn't seem to apply in this case, oh well !