PowerLinx Inc (PWNX)

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Couple of good points from RB.....

Q4 Converts yield HORRIBLE DILUTION:

~VERY, VERY UGLY ~

"During the year 2000, we issued 8% convertible debentures for proceeds totaling approximately $3,288,000. The debentures are for a term of twelve months and are non-interest bearing for an initial period, after which, interest was payable quarterly. No interest was paid on the debentures. The debentures were convertible by the option of the holders into shares of our common stock at a price of between $.50 and $8.00 per share. During the year 2000, we issued 5,373,584 shares of our common stock in exchange for $3,188,000 of our convertible debentures."
- SEVU Y2000 10K

~COMPARE TO Q3 2000 10Q~

In the first quarter of 2000, the Company issued 8% convertible debentures for proceeds of $2,735,237. The debentures are non-interest bearing for the first thirty days, after which, interest is payable quarterly. The debentures are for a term of twelve months. The debentures are convertible by the option of the holders into shares of the Company's restricted common stock on the basis of $.50 to $8.00 per share. Proceeds from the issuance were used to fund operations of the Company.

During the second quarter of 2000, the company exchanged the $2,735,237 of convertible debentures for 2,217,449 shares of Company common stock.

OUCH THATS GOTTA HURT!!!!!!!!!!

http://ragingbull.lycos.com/mboard/boards.cgi?board=SEVU&read=31316


So UB,based on those facts......

An additional 3,156,135 shares were issued for $452,763.00
or.144 cents per share in the 4th Q.But,SEVU states that the low price was .50 cents per share.HUH!!!!

Sooooo,apparently the Q3 statement on the convertibles was a gross misstatement of fact(Are you surprised?).

What is the truth????

MY OBSERVATIONS
739RTK

http://ragingbull.lycos.com/mboard/boards.cgi?board=SEVU&read=31320

The debenture debacle? What is the truth with the debenture? To me it look funny, smell funny, hmmmmmm?

IMO

Happy Posting! ++++