To: Rande Is who wrote (7445 ) 5/23/1999 10:22:00 AM From: Ga Bard Read Replies (1) | Respond to
Rande ... due to it movement up I did a qick 30 minute DD on PLCO ... I do not know if you all read this but I am not sure why everyone isso up on this stock... You make dang sure you BTS this puppy .. The float is NOT what you think in my opinion in any of the securities and expect a major dilution to occur.The Company had planned to finance the costs of opening those new stores through a combination of capital lease financing, use of the Company's working capital, and the sale of additional equity. The Company received approximately $420,000 in lease financing on December 30, 1998 and recently received another $150,000 in commitments for lease financing. The Company continues to seek additional capital lease financing. purchased 1.4 million unregistered shares of the Company's common stock in a private transaction. The President of Hollywood is also the Chairman of the Company. Hollywood is a publicly traded company. The shares purchased by B.W. represent approximately 25.4% of the total common stock issued and outstanding after the transaction. (BTW this is 15M shares) This price was a 50% discount from the then current market price reflecting a discount for the illiquidity of the shares, which do not carry any registration rights. $300,000 of the consideration was in cash and the remaining $205,000 was in product from B.W., primarily girl's swimsuits. The Company had previously carried swimsuits from B.W. in its stores on a trial basis. an offshore account ... warning convertible, subordinated debenture due December 31, 1999. The debenture will bear a 5% interest rate and will be convertible into the Company's Series E preferred stock at a price of $0.10 per share at Frampton's option. This price was a 50% discount from the then current market price (November 13, 1998) reflecting a discount for the illiquidity of the shares, which do not carry any registration rights. the sale of additional equity. In January 1999, the Company and Frampton executed a letter agreement pursuant to which Frampton has agreed to act as the exclusive placement agent and financial advisor for the Company in connection with a proposed offering of $5 million in convertible subordinated debentures on terms similar to the debenture discussed above. The agreement is for a term of six months (with a potential two month extension at Frampton's option) and provides that Frampton shall be provided an investment banking fee of 8% of the face amount of each debenture funded. There can be no assurance that the Company will be able to obtain sufficient financing to successfully open the planned new stores. 2. To vote on the proposal to amend the Company's Certificate of Incorporation to authorize an increase in the number of authorized shares of the Company's (a) Common Stock, par value $0.01 per share, from fifty-one million shares currently authorized to one hundred sixty million shares and (b) Series E Preferred Stock, par value $0.01 per share, from ten million shares currently authorized to twenty-five million shares; and
