To: Suzanne Newsome who wrote (28410 ) 5/18/1999 7:04:00 AM From: Ellen Respond to
Kudos Suzanne.Does it not make sense to pursue the alternative financing as vigorously as possible, pay off the PP, and not increase the authorized shares if possible? Obviously, the alternative financing may not be found in time. But why is it so clear to Mr. Gordon at this point that the authorized shares must be increased first? Suppose the company doesn't obtain the financing in time and has to increase the authorized shares. The shares are put in escrow, the alternative financing is obtained, the PP paid off, then there is a potential 50 million shares available. For what? This is a very worrisome question for me. Over the past year, TSIG's shares have increased astronomically. This has been explained to me as being accretive, as being necessary to attract quality management, and as necessary to finance growth. While there is an element of truth in all these explanations, the outstanding shares cannot increase 300% in 1999! There is a limit, Mr. Gordon. There is a limit, Mr. Gordon. It has been mentioned that Mr. Gordon is interested in using shares for acquisitions. I believe the promotional campaign for that cause has begun. Am I the only person that thinks TSIG has plenty of irons in the fire at this time? Is the online services division, teleservices, and the card division not enough for one cash-strapped turnaround company? Would it not be better to slow down a little and let our bank account catch up with our ambitions? We heard this weekend an eloquent plea for customer service. Rather than continually buy more, start new divisions, issue more shares, expand into new areas, let's slow down and consolidate what we have. Let's execute the plan we have underway before starting something new. Is the MyMusicCard web site comparable to CDNow? to Amazon? Is customer service comparable or better? This is the type of thing we need to concentrate on now. half the available PP funds? Now, all of it is to be used. I know, someone will say "But it was for new-hires, expenses for the new division(s)..." That's fine. I understand the need to "spend" for that. I say let's see some return on those expenditures before looking for ways to "spend" and dilute further. And while we're at it, what am I missing? I thought the reason for seeking additional & more conventional financing was to pay off the PP. Now there's talk that IF it's received it may not be in time to pay off the PP. If it isn't received prior to October, does that mean prevailing thought is there won't be any or enough revenue to do that by October without additional financing? If that's the case, then there's something wrong here.
