eMAIL Moffitt to REVISE the USSE deal!!!
Just posted this on the ONYI board.
First time poster, Long Time Lurker
Some of you may have met me on the chats that usfbrian held (thanks Brian for setting those up). I have been invested in JMCP/ONYI since b/f the F/S with CWFG. I am not a basher, I am LT all the way.
However, I am very upset with what Taylor has done with ONYI for the following reasons:
1) he upped the O/S to almost 70 million.
2) he started paying off people with stock in ONYI (via the 8K on 12/20/06)
3) he and McGovern own way too large a portion of the O/S via Vineyard and their original JMCP positions. This is unnecessary. CEOs in Fortune 500 companies don't hold such large positions b/c it is unnecessary with anti-takeover measures usually embedded in the convertible features of preferred dividends (which Moffitt and McGovern hold). Excecutives such as Michael Dell and Bill Gates earn their money by getting stock options once the company has matured and selling that while retaining their 5%-10% interests.
AND MOST IMPORTANTLY
4) he is selling out the original shareholders in JMCP/ONYI by giving a 1.2 shares/per USSE which will diluting the living daylights out of the stock.
Why am I so upset? B/c if they truly want to get a national exchange, they are going to have to R/S b/c they diluted ONYI all the way up to 1 billion. Reason: need to have a low O/S to get a higher PPS to qualify for an exchange. Much easier to have a 70 million O/S and stock price of $13/share than an O/S of 1 billion with a PPS of $1/share.
Add the fact the USSE deal is absolute larceny in that they are giving USSE shareholders way too much and giving us "original ONYI'ers" the bag. Think about it? over 700 million shares will go to USSE shareholders while only 20+ million whent to the "original" shareholders? That's terrible! USSE is a pink sheet company with a technology that is still experimental! And you are going to give them control over a company in ONYI that:
1) is fully reporting
2) has an actual brick and mortar operation
3) is expanding
4) has backorders
Not much else I need to say. As I am a new poster, I won't be able to post much until the admins clear me, so I will respond later in the day.
Have a good day.
(addition to post in JMCP: I am very upset in the dilution in the fact it also leaves less growth for us in making money in this stock. For example, if the USSE deal goes through and we have 1 billion in O/S, we can only go to $10/share to have a market cap of a 10 billion (very unlikely for a LONG LONG TIME). Thus, we "original ONYI" shareholders don't get much return as compared to keeping the O/S at 100 million (post USSE merger) and running the market cap to 10 billion which would equal a $100/share.)