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Microcap & Penny Stocks : TheBigHub.com (OTC:BHUB) -- Ignore unavailable to you. Want to Upgrade?

To: RikRichter who wrote (568)	5/19/1999 10:54:00 AM
From: opalapril	Respond to of 666

Thanks. Here's more on the new crowd, who look exceedingly shady. I'm getting outa here with an indecent and utterly unearned profit -- before some Bigguy.com makes a Bigthreat.com to break my Bigthumbs.com because I think they're all Bigcrooks.com BigHubcom Sells Stock at 72% Below Market: Financing Business Stamford, Connecticut, May 19 (Bloomberg) -- BigHub.com Inc., an Internet company that shuffled management this week, is privately selling shares at 72 percent below the market price in an offering most investors don't know about. The operator of the ''iSleuth'' Internet search engine is selling $20 million preferred shares convertible into at least 5 million common shares. Each preferred share costs $4 and can be converted into a common share. BigHub.com shares traded early today at 14 1/2, down 3/4. The company hasn't publicly disclosed the stock sale, which will more than double its outstanding shares from the current 4.3 million. A copy of the offering memorandum circulated this week details the sale, whose proceeds will be used for marketing, working capital and general purposes. Al DiGuido, named president and chief executive of the Stamford, Connecticut, company on Monday, wouldn't discuss the stock sale. He emphasized the company's business plan. ''It's going to be the ultimate shopping and search engine,'' he said in a telephone interview. DiGuido said his official start date is June 1, although the private placement memorandum said he started last month. DiGuido and 10 other managers were installed this week. The company changed its name from Isleuth.com last week. Nine months ago, it changed its name from Coordinated HealthCare Inc. after selling a chain of health clinics. BigHub.com, which hasn't disclosed revenue or earnings yet, aspires to ''greater size and membership than of Yahoo's conglomerate of enterprises,'' its offering statement says. DiGuido was previously executive vice president of Ziff Davis Inc.'s E-Commerce Group, which included Computer Shopper magazine. U.S. Investigation Three other members of the new management team previously worked for an Internet company now under investigation by the Securities and Exchange Commission for stock manipulation. Frank Denny, the chairman, Pat DeMicco, a director and Ogden Forbes, research consultant, previously worked for Shopping.com, an Internet retailer bought by Compaq Computer Corp. in March. Shopping.com remains the target of an SEC investigation into the manipulation of its stock, said SEC attorney Ron Wood. Last week a federal judge ruled that its underwriter, Waldron & Co., made $4.1 million by illegally manipulating the price of Shopping.com shares. He also found investors weren't told that purchases by Waldron accounted for 42 percent of Shopping.com's revenue in fiscal 1998. Robert McNulty, founder of Shopping.com, owns more than 5 percent of BigHub.com, according to the private placement memo. McNulty isn't involved with BigHub.com, said DiGuido. In October 1995, four months before founding Shopping.com, McNulty agreed to a permanent injunction against violating securities laws to settle an SEC allegation that he led ''a complex scheme to defraud investors'' in four other publicly traded retail companies. Mistakes Made ''I made a mistake,'' McNulty said in an interview last year. ''I'm not the bad guy everyone wants to portray me as.'' BigHub.com has never filed a financial statement with the Securities and Exchange Commission, although it said in January that it would become a reporting company after the completion of its 1998 audit in February. It trades on the OTC Bulletin Board, which has no listing requirements. The private placement's offering memorandum says buyers of the preferred shares will be able to convert half their stock into common in 30 days, and the remaining half in five months. The preferred shares pay 8 percent annual interest until conversion. They will be registered for public sale within 60 days. They can be converted to common stock at the lesser of $4 a share or the average of the lowest three days' bid price 30 days before conversion. The conversion price to common shares of $4 compares with BigHub.com's average closing price this month of 12. It hasn't traded as low as 4 since Jan. 8. Robb Peck McCooey, a New York investment banking firm, is handling the preferred stock sale. Steve Freifeld, managing director of its investment division, said he won't comment on the sale until it's completed.

To: RikRichter who wrote (568)	5/19/1999 10:57:00 AM
From: Francois Goelo	Read Replies (1) \| Respond to of 666

Elliot, this is a very damaging story for ex-SLEU. TKLB? What do you know... about it? J. Bennett, with whom I had a lengthy meeting back in February is a very capable guy. It may be worth following him in his new venture. Regards, F. Goelo + + +