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Technology Stocks : NetNation Communications, Inc - NNCI -- Ignore unavailable to you. Want to Upgrade?

To: Carl Smith who wrote (14)	5/2/1999 2:55:00 AM
From: r g potgieser	Read Replies (1) \| Respond to of 121

Carl, seems there is a little flaw in your typing of the link RG

To: Carl Smith who wrote (14)	5/2/1999 9:53:00 AM
From: FFNEODOC	Respond to of 121

Great to see we're getting some Activity!!! The Following are some PR Excerpts from PR's (XNET, NNCI, CBET) & an excerpt from Net Nation's IR FAQ. I have requested a NNCI Investor's package but haven't received it yet (on vacation in Orlando). Following each is my comment & interpretation; These are my opinions only & should be taken as such, an investor long in XNET & NNCI. I do base these interpretations on factual information & have tried to be impartial. "Vancouver, April 8, 1999 - NetNation Communications Inc., Canada's largest E-commerce hosting solutions provider announced that it has been acquired by Collectibles Entertainment (OTCBB-CBET), a "shell" company, in order to become a publicly trading company. As part of the agreement Collectibles will issue 10 million shares from treasury to NetNation's shareholders and employees. Collectibles has arranged a $2 million financing in the form of 450,000 common shares at $2.00 per share and $1.1 million in convertible debentures convertible at $2.00 per share. At the conclusion of the transactions, after an existing one million share control block of restricted shares will be cancelled, Collectibles (as the amalgamated entity) will have 14,547,000 basic and 15,097,000 fully diluted shares outstanding. As a group, the shareholders and employees of NetNation will own over 66% of the outstanding shares of the Company. Mr. David Talmor (MBA, CPA), President and CEO of NetNation, has been appointed as President, CEO and Director effective immediately with Mr. Ernest Cheung staying on as Director." Net nation was privately owned but obviously had some venture capitalists that partially held that 1,000,000 control block (now canceled). Their shares were likely converted to the common shares (at some multiple) in the new company & I suspect are RESTRICED. The financing that will raise $2 million for Net Nation operations and expansion was obtained by issuing about ~1 million shares at $2 (combination of discounted shares & debentures)... I suspect there will be some restrictions here, also, but I hope to be able to answer this better from the IR package. These "investors" could get a instant return of > 100% otherwise, but I suspect they would more likely want to hold on for the big payday somewhere down the line. Also, Mr. Cheung was involved in this transaction (as in XNET) and since those XNET recent financing shares were restricted, I wouldn't be surprised if this was the case with NNCI. Mr Cheung was the President of the "shell" company CBET & now that NNCI is public, he has stepped down to let Mr. Talmor be CEO. Mr. Cheung is still a Director of both NNCI & XNET. Xin Net Management Marc Hung, B.A.Sc.(E.E.), M.A.Sc. (E.E.) -President Ernest Cheung, B.Math., MBA - Director and Secretary Angela Du, B.A., M.Sc. - Director Michael Liang, B.Sc., Ph.D. - Director Maurice Tsakok, B.Eng., MBA (MIS) - Director Covered above; "Q: Are there any audited financial statements from NetNation? A: NetNation's financial reports have been audited by KPMG. We will be posting them on our website in the very near future. Q: Are there plans to move to a different exchange? A: NetNation plans to move to "NASDAQ Small-Cap" as soon as possible. Please note that there is no guarantee that we will be accepted nor be able to fulfill the requirements." If there was any doubt that NNCI & XNET are pursuing a NASDAQ listing, it is dispelled by this excerpt from the NNCI IR FAQ. Can't imagine why any one would want to sell their shares until this happens. FUND managers & Mainstream Analysts don't purchase or cover OTCBB stocks, period. The door will be opened for some real stock appreciation once these 2 companies are listed on NASDAQ. The following is the most speculative of my observations. With the E. Cheung connection, I wouldn't be surprised if an XNET-NNCI merger wasn't in the works. What a synergy... a large multinational WEB hosting company & a Chinese ISP-Portal. Time will tell if I'm off the mark on this one or not. I'll post any info I get from the IR package here next week. Happy investing, Frank