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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: makin_dough99 who wrote (24287)	3/26/1999 8:52:00 AM
From: Tradelite	Read Replies (2) \| Respond to of 122087

Keep an eye on this new "male entertainment" puppy.... _______________ Maryland Lifts Ban on IPO for Adult Site By Mark Leibovich Washington Post Staff Writer Friday, March 26, 1999; Page E3 Maryland has lifted an order barring in-state sales of shares from a tiny Bethesda firm that hopes to be among the first sexually oriented online services to go public. In a deal struck earlier this week, Efox.net Inc. agreed not to sell shares during a 120-day "cooling-off period." Early this month, Efox filed forms with the U.S. Securities and Exchange Commission to hold an initial public offering, a step that the company's 28-year-old founder, Joseph Preston, called a "history-making event." But on March 9, Maryland Attorney General J. Joseph Curran Jr. (D) issued a "stop order" on in-state sale of Efox shares. Curran charged that Preston had illegally promoted the sale of Efox shares in statements to the media and on the company's Web site. Curran said Efox had engaged in a practice known as "gun-jumping," the marketing of shares in a public forum during a pre-IPO "quiet period" that is required by the SEC. Efox obeyed the stop order by eliminating all information about its stock offering from the Web site. Efox could have requested a special hearing before an administrative-law judge on the stop order but chose not to. "We felt that a cooling-off period would be a most appropriate remedy and penalty in this case," said Tim Cox, an assistant Maryland attorney general in charge of securities registration. "This will give potential investors time to rethink any potential investment." "I sincerely apologize to the Maryland Attorney General and investors and users of the public markets for any miscommunication that may have occurred," Preston said in a prepared statement. Under the terms of the settlement, Efox neither admitted to nor denied wrongdoing in the matter. Efox bills itself as a "men's entertainment destination" that provides "upscale adult content including the most beautiful ladies in the world." Preston, whose company has no revenue and who is Efox's sole full-time employee, pays free-lance models 500 company shares per photo shoot. In an interview yesterday, Preston said it will be full speed ahead on the Efox IPO after the cooling-off period. "We will still make history," he said. "In 120 days." © Copyright 1999 The Washington Post Company