GMan...I empathize with you because I have had exactly what you say happen to me before but in this case before you sell out here are a few considerations:
1. Son Cav is the developer and shipper of the tech. LEXG is the purchaser, receiver, user and distributor of the
tech.
2. Lexg is completely dependent upon a company they have little influence let alone control over....this is part of
the problem. They are physically not co-located. LEXG is dealing with a semi-proven tech that still has
needed further development.
3. Equity financing has the advantage of not needing to make regular cash payments to lenders early in a
developing company's life when they don't have the cash, but they still have to pay for the money they use.
They pay with stock and while it is dilutive in nature it is the nature of equity financing.
4. WALSH is not diluting our positions because he wants to but because he has to. There are interest
payments to make on past loans and conversions of promissory notes to stock, etc. Fortunately for now the
majority of the borrowing is done. The disposal business is in need of capital expenses but will wait for the
tech cash flow to begin. The R/S, while predominantly viewed as a negative event, in this case is a
positive one because it is the only option. Without it the maintenance cost of the debt, conversions, etc.
would have been 20x more expensive and dilutive.
5. The stock price has been diluted by roughly 10x in the last year: 100mil share outstanding to 1bil.
The rest of the price decline is due to point 2 above which degrades accurate and timely information
and serves to foster the "scam" worries and emotions of fear. Time is money, or in this case shares of stock,
and any delays caused by #2 is dilutive.
6. By far, it is the traders that are capitalizing on emotions that are responsible for the majority of price decline.
In an inadequate information situation it's easy to elicit fear and get people to sell.
7. I choose to give the tech a chance. JMHO
