Dionics, Inc. (DION)

[Potse]

DION...stock purchase agreement.....

Picked up some shares of DION in the 5-6.5 cent range. I believe the potential action described in the 10/13/2009 8-k will likely represent an important turning point in the company's history, and could be a precursor to some nice developments (both from a business and stock price perspective).

The stock purchase agreement outlined in the 8-k filing on Tuesday has an outside party purchasing a total of 13 million shares (11M newly issued, and 2M from the CEO's personal holdings) at .04/shr. This will give the investor a 62+% ownership position in DION. Fully-diluted share count following the transaction will be about 21M. If the CEO converts some debt into shares at .09 in the next year, there would be about 23.5M fully-diluted.

One of the more interesting things in this filing was the identity of one of the law firms (Anslow & Jaclin) and an investment banker (Brean Murray, Carret & Co) that had involvement in this transaction. Both of these firms have a history of working with China/Asia corporations and individuals.

I think the involvement of these two entities coupled with the fact that the investor is going through a British Virgin Islands corporation opens up some intriguing possibilities of what might eventually take place here. My hunch is that this purchase agreement could signal that some foreign company (most likely located in China/Asia) has some type of potential business interest in DION's products/technologies, or perhaps this is a precusor to an eventual merger/acquisition with a foreign entity.

Stock purchase agreement.....

http://knobias.10kwizard.com/filing.php?param=&ipage=6551573&DSEQ=3&SEQ=&SQDESC=SECTION_EXHIBIT&exp=