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Microcap & Penny Stocks : MEGACHAIN.COM LTD (OTC-BB: MGCN) -- Ignore unavailable to you. Want to Upgrade?

To: Michael Graham who wrote (114)	5/22/1999 11:44:00 AM
From: Blue Voodoo	Respond to of 191

Dear Michael, thank you for the MGCN clarifications. It is my understanding that the million bucks in working capital is indeed mostly cash, which is being used primarily to finance proprietary software development and marketing costs. You are absolutely right about the market cap. I should have said that $5 million is the value of the float (that is, total value of the tradeable shares), not the valuation of the company. By the way, it seems to me to be another positive for MGCN that something like 80% of the shares do not now trade, and will only be released slowly over many years (through options and warrants for the founders). That ties them to really growing the business. The semi-mythical 'secret canadian insider selling' that shorts have claimed on other stocks can't happen profitably here. B.V.