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Message: RE: Newly authorized shares...

RE: Newly authorized shares...

posted on Sep 13, 2005 10:55AM
I still conclude that it would not be beneficial to the shareholders to allow an equity position at these price levels, too much dilution and little in return .

Next, we may yet see the our rightful share of the embedded system as Wencor must use our technology or seek an alternative, time is not on their side for this deviation from plan.

As has been stated, it`s agreed upon quantities and intellectural rights where the differences exist.

As to options, we have seen the use of 100 million added shares over the last 5 years, and lots of debt financing. I asked about an equity position back when the pps was in the $5.00 range as was told they didn`t want to consider it even when they an interested parties.

That strategy would be fine, but only if the pps was 20-40 fold of todays prices. Then if a big deal was to come up, the necessary capital would be available. If it came now, you may have to sell 50 million equity shares just to end up with approximately 5 million dollars, which doesn`t buy you much.

So sell first, get some new contracts and the pps will take care of itself.

We simply have a friendly disagreement on what the management strategies should be regarding how to generate new capital.

OZ

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