A statement in the Eutro newsletter #3 talks about money owed on stock sold during the same 'dark ages' as above. This has caused some confusion. Let's take a look at the actual statement (the 'first topic' is over on the history page): 

The second topic concerns obligations to Eutro in both stock and cash by certain parties. As you already know, during the recent lean times we had to obtain funds with which to pay expenses by effecting private placements of Eutro common stock. Some of the persons who bought the stock have not paid the total amount owing on it. We have been trying for some time to get these persons to pay the amount owing or return the stock. We have met with very limited success and we hereby inform you that we have resorted to legal means to obtain satisfaction. As with the first topic, you will be kept informed on this as you have on all matters affecting your company. 

Eutro wants to take this opportunity to wish you all a happy holiday season as well as a healthy, happy and prosperous New Year.

Fact: there are no official public statements on the '50 million' from Eutro. Legal council has since put a zip lock on Eutro IR regarding this issue. 

This is my account of the situation. Since much information is based on hearsay and conclusion drawn from second hand information and, I am sure, opinion, I welcome any information that brings this editorial closer to real life.

To: +MrBuzz (1185 )  
From: +E Richter  
Sunday, Jan 25 1998 2:18AM EST 
Reply #  of 1187  

I spoke with Brad on Thursday. Freedom Medical should start trading in about 2 months. There are some problems with Santiago Cigar, partly because SEC prefers established companies to startups. He could not give me a trading date for them. (no more dividends for a while) As far as the third company that was mentioned in the Santiago news release, and others that they are talking with, EUTO are doing more research on companies before they sign a contract with them to avoid possible problems in the future. 
 

I have had a feeling that the SEC debacle a while back with new requirements for OTCBB's and all has created some additional hurdles for Eutro to lug their customers (Freedom Medical et al.) over. Ironical if so, first they come back from never never land and then the rules change. I have a feeling we're in a period with above average friction for Eutro. Being humans, they are doing an excellent job so far. I guess this year will be mostly spent resolving old problems and adjusting to the new quirks of the trade. Should the guys at Eutro proceed through '98 with the same zeal as in '97 I think we will more than ok.

The short squeeze campaign held the stock at a dime for months until information leaked out that 50 million shares that was supposed to be held as collateral for a loan actually had been traded and was in part or fully in the float. This caused a massive selloff eventually bringing the stock to the three cent range. The selloff was most certainly taken advantage off by short sellers helping to drive the price further down. A statement by the company that the 50 million 'loose' shares would be taken care of and be returned to the company initiated a mild recovery. The deadline for the return has been a matter of debate but January 23-ish has been the consensus among many. No official statement has yet been issued in the matter. 

In a clever move by Eutro to bring the stock closer to its true value a dividend of sorts was publicly announced. All shareholders are to receive a portion of the stock Eutro was paid when bringing Freedom Medical public. The statement brought a momentum based spike and left the stock building base at a higher level of about six cents. The irony is that Eutro had announced that they would use this tactic much earlier. I cannot readily find that statement now but I think it is somewhere in the investors packet. Pointers anyone? [Edited: I have been advised that 'dividends' of this sort was discussed in latest Eutro newsletter (#3), my copy is post marked December 16, 1997. It states that Eutro will do this with all applicable companies they bring public. It also talks about the six month delay SEC imposes. Thanx to John Algermissen for that.] However, this move has shaken out any weak shorters. To be recorded for the dividend your holdings at the last of January is used. 

Currently I think we are 'enjoying' an interesting equilibrium with money chasing the dividend going into the stock and restless money leaving that came in in December 97 hoping for a quick solution to the 50 million shares. Due to the late date most have made their move, the volume is down and the tension is up. If my reasoning holds we will see some volatility up ahead.