Thanks for posting that Geoprof, although I am no lawyer. it appears that these rules and regulations are in place to protect the investor from himself as he may be taken advantage of by an unscruplous seller.

In any event there are means to include all current shareholders if additional funds are required by NOT, if the BoD wishes to inculde current shareholders in such a fundraisign event. I have attached Boatboys post of Oct 30/08 which speaks to this occurring in other companies.

Hope you don't mind Boatboy.

Posted by: Boatboy on October 30, 2008 07:35AM

I have held a couple of stocks where instead of a PP they go through the process of issuing warrants to ALL shareholders based on their holdings. For example, if we need $20M they could issue one warrant for each share you hold (say 20M warrants at $1.00). The warrant would then allow you to buy a share at $1.00 up to a point in time and you can also trade the warrants. We could all average down without personal dilution. Usually the big boys then guaranty to buy any shares not taken up.

getting into the numbers,

130,000,000 shares O/S at say 1 for 6 would be 21,666,666 warrants and at $1 that would raise $21.666M. This money is paid into the Comapny coffers and there are no commission fees to buy in.

How many here would add 1/6th to their position for $1.00 per share? I like this approach because it is open to ALL shareholders and is designed to keep the playing field level. A PP will result in an imbalance in favour of our new leaders.

Anyone else been through this type of fundraising?