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Microcap & Penny Stocks : MIDL .... A Real Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: jcmoore who wrote (5397)	4/13/1999 1:51:00 PM
From: grw5	Respond to of 7039

As I remember it, the date for conversion was already set before trading was halted and would have taken a shareholder vote to stop the conversion(which many were in favor of at the time). The question at this time seems to be did the clock stop on the conversion when the trading was halted(which would mean the conversion didn't happen on the scheduled date) or did it continue to run(which would mean that the conversion has already occurred). If the clock stopped then the shareholders will still get a chance to vote on stopping the conversion, if not, then they will be getting common instead of pref. At least that's my take on it and I can't tell whether that's good or bad at this point. Also, I don't know who you would contact to get an educated answer. Best of luck, George

To: jcmoore who wrote (5397)	4/13/1999 2:18:00 PM
From: jcmoore	Read Replies (1) \| Respond to of 7039

From the 10KSB dated 12/15/98 Should have automatically been given commom equivilant from the P conversion. 301,821 shares of Series A Preferred Stock convertible into approximately 12,782,120 shares of common stock. The Series A Preferred Stock is considered to be a common stock equivalent for purposes of this calculation. There were, therefore, 16,272,077 common share equivalents outstanding, of which affiliates held 143,990, leaving 16,128,087 common share equivalents held by non affiliates. There were no bid or asked quotations for the common stock on that Series A Preferred Stock: The Series A Preferred Stock was to have been automatically converted into shares of common (Common Stock) on October 1, 1998; however, there were an insufficient number of shares authorized to provide for conversion. The Company has allowed preferred shareholders who request conversion in writing to obtain shares of Common Stock, but there is no assurance it will continue to be able to do so given the authorized capitalization of the Company. The Company anticipates calling and holding an annual meeting of shareholders during April, 1999, and, in addition to the election of directors, will place on the ballot a proposal to increase its authorized capitalization to an amount sufficient to provide for conversion. Until conversion is effected, each share of Series A Preferred Stock is entitled to 35 votes on each matter submitted to a vote to the Common Stock as if the two classes, common and preferred, constituted one class. Each share of Preferred Stock is currently convertible into approximately 42.35 shares of Common Stock