SPOOZ Inc (SPZI): Ok. I have a point I'd like to make her...

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ITGuy

Re: None

Monday, 08/06/2007 1:11:56 PM

Monday, August 06, 2007 1:11:56 PM

Ok. I have a point I'd like to make here:

I've heard a lot about the outside investment into Spooz and whether or not that relates to some kind of dilution. I've also heard of questions as to why they would want to sell this technology to anyone if they can make so much money by themselves. I think I can throw out an idea that will answer both of these questions.

Maybe, the investors are not necessarily actual investors into the company at all. Maybe, they are 'paying' to utilize SWARM. Let's say an investor puts $10 Mil into SWARM. Spooz can turn around and say (all hypothetical, of course) "ok. with this money, we will get you a 20% return on your investment within a month's time. Any return above that, we keep as profit". In this scenario, the investor is not 'buying' into Spooz the company, but merely paying for the use of SWARM - with Spooz making a profit off of someone else's money. There is no dilution because there is no true investment into the company.

The stock that we own (common shareholders) are a true investment into the company as they needed the development costs in order to create SWARM in the first place. Now that that's completed, they should be able to raise a profit by living off other people's money without selling part of the company.

Just a thought and IMO

ITGuy

"When we are able to put aside our differences, only then may we say we've evolved."