Subject: RE: File No. S7-5-99 Author: Kevin Andrew Date: 5/4/99 10:13 AM Please reconsider your proposal to require market makers to review financial information on bulletin board companies. I am the CFO of a company on the bulletin board (InfoNow Corporation - INOW). We are basically a public startup created from a public shell. We have always been a reporting company and supply regular financial information to our shareholders. In the nearly four years since we started, we have developed relationships with over 50 blue chip clients including Visa, Bank One Compaq, Intel and IBM. We are nearing break-even and hope to apply for a Nasdaq small cap listing this year. Successful application will require that we maintain a $4 minimum bid price and close a small financing. I believe that if this rule is enacted, the companies that trade our stock will not bother to weed out the "good" companies from the "bad" companies. Every trader I have talked to says they will drop all of us if this rule is enacted. It doesn't make sense for them to spend the time do the research and incur the liability that would be involved with stocks such as ours that have relatively limited trading volume. It simply is not economically feasible for them to make the extra effort. As a result, I believe our market will disappear and our share price will drop to near zero because of the lack of a market. It will be virtually impossible obtain our small cap or any other market listing to ever create a true public market for our stock. The charter of the SEC is to protect shareholders but this rule will serve to harm the shareholders who did their homework to find real companies on the bulletin board in hopes that they could graduate to small cap or AMEX only to have the share values plunge when the market makers disappear as a result of this rule. This rule will leave no path for a company like us to get on a better trading venue such as small cap. I can personally testify as to the significant barriers already in place to prevent trading of bulletin board stocks. In addition, there are new requirements that all bulletin board companies report their financial results. We fully support this new requirement. However, there seems to be no rational reason to erect further barriers. I recognize that there are fraudulent companies lurking on the bulletin board and pink sheets but it is unclear how this rule would help eliminate that fraud. I suspect that the scams will set up their own trading arrangements to leave the legitimate companies like us the only ones without a trading market as a result of this proposed rule. This rule would make us a defacto private company. There would be no reason to continue to meet the new reporting requirements on the bulletin board because there would be no trading. Our only alternative at that point will be to take the company private and doing an IPO that will significantly dilute our current shareholders in the process. Please don't punish the shareholders of companies like ours who did their homework and hope to profit from the growth of our business. I respectfully request that the SEC reconsider this proposal and the effect it would have on the shareholders of legitimate companies like ours.