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Technology Stocks : Enterprise Informatics -- Ignore unavailable to you. Want to Upgrade?

To: Jack P who wrote (3630)	5/14/1999 1:26:00 PM
From: bob zagorin	Read Replies (1) \| Respond to of 13797

Let's get down to cases. Here's the relevant excerpt: "... In addition, as part of the agreement, Spescom will pay Altris an additional $1.0 million and invest $1.2 million directly into Altris Software Ltd. ("ASL"), a subsidiary of Altris, for a 60% ownership of ASL. In conjunction with the agreement Altris will contribute $400,000 into ASL and will retain a 40% interest in ASL. In addition, Altris has entered into a distribution agreement with ASL which grants ASL exclusive distribution rights for Altris' products around the world excluding North and South America and the Caribbean. Under the distribution agreement, the exclusivity is contingent on ASL meeting certain minimum royalty commitments beginning in 2002. ASL has also entered into a distribution agreement with Spescom providing that ASL will be Spescom's exclusive distributor for the same territory for EMS 2000, Spescom's configuration management (CM) product. In addition, the agreement provides that Altris will become Spescom's exclusive distributor of EMS 2000, in North and South America and the Caribbean..." SO ALTS will get undisclosed royalties from ASL which should include UK in addition to retaining 40% ownership. That's not the same as saying they have given up 60% of their EB revenue. They will get all of the royalties plus the 40% ownership ASL as I read it. In addition, they will also get new revenue from distributing EMS. There is dilution and the preferred stock conversion is out there. I also see some new resistance around $1.90 with the readjusted conversion. bottom line, if EB is a great product and catches on, we'll be o.k. the big thing is getting it out in the market place.