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MATH = PROOF We get 47%:AERO controls 53%
The math is solid. All you need to do is work the calculator.
and read the whole post...
We own 47%, AERO owns 53%.
Aero's $1.9 million loan was in the form of 220,000,000 shares drawn from the GGI escrow account.
FCCN shareholders don't tender any of our shares.
read post # 86184
More than possible....
"why is nobody replying to this."
Because longs are in glorious shock.
"Is this even in the realm of possibilities?"
Just do the math and click the links to SEC filings and official PRs. Everything stated was culled from public documents, not conjecture.
**DD: PREVIEW of THE 8K???**
Read the post I'm replying to.
Short squeeze is imminent.
**DD FCCN shareholders WILL own 47% of MERGER**
Stop wasting time arguing with bashers about nonsense.
Make them argue with you about all of the incredible DD just thrown down here.
FCCN shareholders MUST READ the post I am replying to.
Headline #1: BULK OF AERO SHAREHOLDERS' FCCN SHARES WERE DRAWN FROM THE GGI ESCROW ACCOUNT.
Headline #2: AERO owns approximately 53% of FCCN while FCCN shareholders own approximately 47%.
Headline #3:POST MERGER O/S = 564,129,838.
Headline #4: NO PART OF THE 4.25 BILLION "AUTHORIZED" (but not issued) FCCN SHARES WERE CONVERTED OR EXCHANGED IN THE AERO MERGER.
Headline #5: 10.09.07 PRE OPEN FCCN MARKET CAP = $12,410,856
843,818,400 shares of restricted common stock were placed in an escrow account for two purposes:
Purpose #1: to satisfy the GGI debt
Purpose #2: to fund the AERO acquisition
*DD:BULK OF AERO SHARES PAID VIA GGI ESCROW*
Headline #1: BULK OF AERO SHAREHOLDERS' FCCN SHARES WERE DRAWN FROM THE GGI ESCROW ACCOUNT.
Headline #2: AERO owns approximately 53% of FCCN while FCCN shareholders own approximately 47%.
Headline #3:POST MERGER O/S = 564,129,838.
Headline #4: NO PART OF THE 4.25 BILLION "AUTHORIZED" (but not issued) FCCN SHARES WERE CONVERTED OR EXCHANGED IN THE AERO MERGER.
Headline #5: 10.09.07 PRE OPEN FCCN MARKET CAP = $12,410,856
843,818,400 shares of restricted common stock were placed in an escrow account for two purposes:
Purpose #1: to satisfy the GGI debt
Purpose #2: to fund the AERO acquisition
FACTUAL ANALYSIS
The debenture obligation was reduced by 80% of the average of the five lowest closing bid prices of the Company’s common stock over a 45 day period prior to the share withdrawal multiplied by the number of shares being withdrawn. 400 million shares from the Escrow account were returned to the FCCN treasury and canceled as of October 4, 2007.
443,818,400 were drawn from the Escrow account and converted into FCCN common stock. The formula used as to GGI's share conversion was as follows:
Step 1: Determine the lowest five closing bids over the 45 day period prior to any GGI escrow share conversion
Step 2: Add those five closing bids and divide by 5
Step 3: Multiply that number by ".8"
Step 4: Multiply the average determined in "Step 3" times the amount of shares requested.
The product of the STEP 4 multiplication equals the dollar amount the debt owed from FCCN to GGI is reduced by after each GGI draw down. (Please keep the term - "draw down" - in mind. It plays big later in this analysis.)
The debenture agreement was entered into by FCCN and GGI in November, 2006. The lowest possible closing bid average for any five days, according to the formula used, is greater than .001 according to market history of FCCN's public trading activity using the LOW OF THE DAY for all trading days between November 2006 and October 4, 2007.
For the sake of argument, even though certified market data proves that this number must be higher than .001, we will use .001 for the following analysis:
5 x .001 = .005
.005 divided by 5 = .001
.001 x .8 = .0008
.0008 x 443,818,400 = $355,054.72
In November 2006, the Company agreed to settle litigation with Golden Gate Investors on a past-due convertible debenture having a principle balance due of $220,927. The numbers cannot possibly add up
CLEARLY, GGI was not the only beneficiary of the ESCROW account.
Furthermore, the figure of of $355,054.72, as determined by the formula, is too low. GGI was not allowed to draw down all of the debenture at once so that it never held more than 4.9% of FCCN. The five day averages of the lowest closing bids, according to market history, was certainly greater than .001.
In other words, at the end of the debenture, the dollar amount credited for the 443,818,400 shares drawn from escrow was much greater than $355,054.72
SO WHO WAS THE OTHER BENEFICIARY OF THE ESCROW?
It was AERO. And herein lies the genius of the terms for the 1.9 million dollar loan from FCCN to AERO.
FCCN never spent a dime of our money to acquire AERO.
Instead, they allowed AERO to draw down their loan according to a similar formula as was used by GGI. The PRs provided clues and the MATH confirms this.
From the January 30, 2007 PR:
"The escrow agreement was designed to allow Franchise Capital to set aside a sufficient number of shares to cover both the settlement of debt and to allow access to capital as the company moves forward with its acquisition of Aero Exhaust..."
http://www.franchisecapitalcorp.net/upload/FCCN_PR_01-30-07_8-K.pdf
And from the March 14, 2007 PR which discussed the annual shareholder's meeting, please pay close attention to the language employed as to the nature of AERO's loan:
"Among the topics addressed was the amount of capital currently drawn down by Aero as part of the $1.5 million loan made available by Franchise Capital. Mr Peacock estimated the total amount drawn down to be approximately $1.2 million thus far."
Aero's loan was paid via shares from the escrow account. It was not a cash payment. The 8K should bear this out.
The total amount of shares owned by AERO is equal to the number of shares converted from escrow + the number of restricted shares tendered to AERO by FCCN.
NOW HERES THE GOOD NEWS FOR FCCN LONGS
According to the January 19, 2007 PRE 14A form, filed with the SEC, the FLOAT was no greater than 77,000,000 shares at that time.
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=4890193
The POST MERGER O/S = 564,129,838
PRIOR TO THE ESCROW AGREEMENT, A MAXIMUM OF 77,000,000 SHARES WERE BEING PUBLICLY TRADED IN THE FLOAT.
443,818,400 were converted to "issued and outstanding" FCCN stock from the escrow account. Assuming half of that went to GGI and the other half went to AERO, then AERO already owned approximately 222 million shares prior to the merger closing.
According to the October 1, 2007 10K, "The Registrant had 964,129,838 shares of common stock" and we know that 400,000,000 shares were canceled leaving the O/S at 564,129,838.
SEC filings and PR's do not reflect that any shares have been "issued" from the 4.25 Billion "authorized" shares of FCCN.
The 10.04.07 PR states that "issued and outstanding" FCCN shares would be "exchanged" for 100% of AERO's stock.
The word "Authorized" is not used in the PR announcing the close of the merger. "Authorized" is a legal term of art.
Add the total number of shares converted from the escrow account to the pre-escrow O/S:
443,818,400 + 77,000,000 = 520,818,400
Subtract that from the the O/S as of 10.04.07:
564,129,838 - 520,818,400 = 43,311,438
This number equals the difference between the "post debenture escrow O/S" and the "pre debenture O/S" and most likely represents the number of "restricted shares" tendered to AERO for the closing of the merger.
Assume GGI got half of the shares converted from the escrow, approximately 222,000,000, and that AERO received the same amount.
222,000,000 + 43,311,438 = 265,311,438
AERO also controls another 31,660,000 shares according to the FORM 8Q filed on 10.03.07
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=5461240
265,311,438 + 31,660,000 = 297,971,438
With the current O/S at 564,129,838, AERO must own approximately 53% of FCCN.
FCCN shareholders own approximately 47%.
FCCN SHAREHOLDERS OWN APPROXIMATELY 47% OF FCCN WITH A CURRENT MARKET CAP OF $12,410,856 AT .022 PPS.
Thank you Mr. Peacock and Mr. Hunsaker, Andrew at Gemini and even GGI... You have certainly earned the respect of small investors everywhere. Thank you for looking out for us and for setting an example of how to conduct awesome business deals without screwing anybody.... except the naked shorts.
Shorts are about to get squeezed. Now please post this far and wide.
MOASS coming.... Aloha and WEEEEEEE!!!!!!!!
***SHORTS caught in PEACOCK/AERO sting ops***
(Cue music: Mr. Joplin's piano plays "The Entertainer".)
PEACOCK has crafted a twist to this merger/story so eloquent and elegant that words fail to grasp the beauty of the endeavor. So deceptive, devious and so delicious all at the same time.
The FCCN/AERO merger will go down in pennyland history as one of the greatest SHORT swindles of all time.
I'm not kidding folks. This is a work of art. The term "Art of the Deal" was never used better than to describe this mother. Holy crap these guys are sneaky.
And their sneaky, wily charms are going to reward FCCN longs while shorts and bashers stand by and gawk as tears go by.
Mr. Peacock, I salute you.
MOASS
DD TEASER: what math doesn't add up?
here is the clue I previously supplied
100,000,000 x .001 = 100,000
try to figure out why this "formula" corrupts the math of a certain aspect of recently closed FCCN business.
No worries, if you don't figure it out before the market opens, I'll be explaining it in painstaking dayglo detail shortly therafter.
THE NEWS IS GOOD!
MOASS
***When the Rumor = NEWS!!! 10.09.07***
Gather round the campfire FCCN longs. Today will be a day in the life of FCCN like no other for anyone following this story from the start.
They say, "Buy the rumor, sell the news."
But riddle me this... glorious FCCN/AERO share swap temptress:
What has two faces and hides in plain site?
Use this formula, and you just may be right:
100,000,000 x .001 = 100,000
After 9:30AM, I will publish DD which is more than DD. This DD, if it weren't culled from previously published public documents, would be accused of being insider information. It's that powerful.
Mr. aeroshortcrusher was close to the truth, but he missed something big. He missed something huge.
My DD will tell you one of the most important revelations from the upcoming 8K. I'll publish this DD shortly after 9:30 AM.
Why am I being cryptic?
I'm sorry, but Ineedmoreshares.
Meanwhile, I've given you a clue. I suggest you use it.
Also, I request volunteers who will take the DD and post it all over the web and in as many forums as possible. Please respond to this post if you're available to help spread the word. I have other commitments today, but I've been up through the night composing the evidence.
I can't predict PPS, but I'll be surprised if this DD doesn't move the PPS up.
MY DD includes FACTS not conjecture. This is no pump or false hype. I have DD which = NEWS.
PEACOCK IS A GENIUS.
coming soon...
HUNSAKER DROPS NEW ACQUISITION BOMBSHELL!!!!!
From the just released Otober FCCN newsletter, HUNSAKER DROPS A BOMBSHELL:
"We believe that acquisition opportnities that are now being presented to us have the potential to dramatically increase the long-term potential of the public company. Being a public company provides Aero the vehicle to execute on this strategy."
Holy freakin crap! They weren't kidding when they said they were taking us for a ride with exciting PRs to follow the merger.
I would NOT want to be short right now. If we don't go up on this PR, people should start to understand how desperate the short MMs really are.
TYPO CORRECTION from last post.
Up to 95% can be anything less than 95%, even 1%, but since the 10-Q form "anticipated" AERO would be the majority shareholder in FCCN (post merger), we can assume that AERO has no less than 51%.
Originally the typo had this reading as "no less than 95%" which is a mistake. It was fixed before the 15 minute correction period ran out, but just in case somebody read it before I corrected it, the above is correct, no less than 51%.
Here's an educational post...
If you have trouble with investing definitions please read the article this came from:
“Restricted Shares” refer to a company's issued stock that cannot be bought or sold without special permission by the SEC. Usually this is the type of stock given to company employees, insiders as part of their salaries or as additional benefits. These are not counted as part of the float, but they are counted as part of the O/S."
http://www.marketmillionaires.com/hot-micro-cap-stock-picks-under-1-00/314-understanding-shares-gene....
I know it's confusing, but it gets easier as you go along.
DownWithPumpers wrote:
"95% of the issued stock is about 4.75 billion."
Wrong. You are making reference to "authorized stock". I quote from the link I gave above:
“Authorized shares” is another commonly misunderstood term: simply it refers to the largest number of shares that a single corporation can issue to the market or individuals."
"AUTHORIZED SHARES" CAN BE ISSUED. As in, "issued in the future."
"ISSUED AND OUTSTANDING SHARES" ALREADY HAVE BEEN ISSUED
The PR CLEARLY states that AERO shareholders will give up ALL of their shares for "up to 95%" of FCCN's "issued and outstanding" shares.
"UP TO 95%" does not = "MUST BE 95%"
Up to 95% can be anything less than 95%, even 1%, but since the 10-Q form "anticipated" AERO would be the majority shareholder in FCCN (post merger), we can assume that AERO has no less than 51%.
NOWHERE IN THE PR OR IN ANY FORMS DOES IT USE THE WORD THE TERM OF ART, AUTHORIZED in reference to the nature of stock AERO will receive.
THERE'S PLENTY OF EVIDENCE WE WILL OWN 38%.
Thank you for keeping this discussion alive. Keep the discussion on this topic all day long, brother. I'd rather argue with you about this positive DD than negative DD any day of the week, so thanks for joining the debate and let's try to educate each other and learn instead of fighting. I respect your questions. I hope you will respect the answers.
"1) There's no evidence to support the idea that the float is less than the outstanding shares.
The Float is ALWAYS less than the outstanding shares. It's a simple formula everybody knows
O/S is comprised of the FLOAT + RESTRICTED shares.
quoting the crusher:
"FLOAT = shares openly bought and sold without restrictions via trading on stock exchanges, ie the shares we own."
"RESTRICTED SHARES are counted as part of the O/S but not the FLOAT."
That's just basic investing 101.
Restricted shares are not part of the FLOAT. Everybody knows that.
2) There's no evidence to support the idea that Aero's shares are coming from the currently outstanding shares. They're obviously coming from the approximately 4.5 billion issued but not outstanding shares.
That's just blatantly false. Read the PR. The PR tells you the EXACT nature of the shares FCCN "exchanged" with AERO.
"The definitive agreement between Franchise Capital and Aero Exhaust was executed in January 2007, and at that time, Franchise Capital announced that it expected to exchange up to 95% of its total issued and outstanding capital stock in exchange for all of Aero Exhaust's issued and outstanding shares."
Stock can be either "authorized" or "issued".
"Issued and outstanding shares"
Here is the definition from http://www.investorwords.com/3536/outstanding_stock.html
"The shares of a corporation's stock that have been issued and are in the hands of the public.also called shares outstanding."
The merger PR does not mention any "authorized" shares, shares that have not been issued and are not outstanding. End of story. No dilution at all from the authorized shares of FCCN.
And to your final point:
3) There's no evidence to support the idea that pre-merger FCCN shareholders will own 38% of the merged company.
Of course there is. Again, I quote the crusher,
"The FLOAT was 173,375,425 on Feb 16, 2007 according to the PR.
http://www.franchisecapitalcorp.net/upload/FCCN_PR_02-15-07_Def14A.pdf
Because of GGI we know that the FLOAT has increased. We do know EXACTLY how much the O/S has increased, but not the exact size of the FLOAT which is smaller than the O/S.
The POST MERGER O/S = 564,129,838 shares.
AERO's cut, according to the language of the October 4 merger announcement, MUST come from the O/S.
We should also assume that the April 16, 2007 report 10-Q is correct and that AERO will be the majority shareholder in FCCN.
So AERO must be recieving more than 50% of the O/S. Again, the POST MERGER O/S = 564,129,838. So Aero must be getting at least 284,064,920 shares.
Since the FLOAT was 173,375,425 on Feb 16, it cannot be any lower now. In fact, since GGI converted 42 million shares from RESTRICTED to common stock between February 07 and October 07, selling them on the open market, we can be certain that the FLOAT is at least 215,375,425. At the most it's 284,064,918 which would be one share less than 50% of the O/S.
So the FLOAT is somewhere between 215 Million and 284 million. Just rounding numbers off, 215 million is 38% of 565 million.
WORST CASE SCENARIO = AERO owns 62% of FCCN and we own 38%.
BEST CASE SCENARIO = AERO OWNS 51% of FCCN and we own 49%."
SORRY, NELLO. My bad.
I edited my last post. Check it out, that lien BS is gone.
I was mistaken.
Let's talk about the float being under 300000000 and the massive volume in the stock suggests a naked short position.
Do you think this is what is happening as was suggested by theaeroshortcrusher?
Market cap of only $10 million at .019 PPS
means we are WAY undervalued.
SHORT SQUEEZE IS IMMINENT....
NOT ENOUGH SHARES IN THE FLOAT for all this volume,
weeeee is coming
sorry about the content of this post previously, it's been altered.
MORE amazing DD...
PART 2~!
WHAT ABOUT THE CURRENT FLOAT? AND WHAT WILL AERO RECEIVE?
The FLOAT was 173,375,425 on Feb 16, 2007 according to the PR.
http://www.franchisecapitalcorp.net/...-07_Def14A.pdf
Because of GGI we know that the FLOAT has increased. We do know EXACTLY how much the O/S has increased, but not the exact size of the FLOAT which is smaller than the O/S.
The POST MERGER O/S = 564,129,838 shares.
AERO's cut, according to the language of the October 4 merger announcement, MUST come from the O/S.
We should also assume that the April 16, 2007 report 10-Q is correct and that AERO will be the majority shareholder in FCCN.
So AERO must be recieving more than 50% of the O/S. Again, the POST MERGER O/S = 564,129,838. So Aero must be getting at least 284,064,920 shares.
Since the FLOAT was 173,375,425 on Feb 16, it cannot be any lower now. In fact, since GGI converted 42 million shares from RESTRICTED to common stock between February 07 and October 07, selling them on the open market, we can be certain that the FLOAT is at least 215,375,425. At the most it's 284,064,918 which would be one share less than 50% of the O/S.
So the FLOAT is somewhere between 215 Million and 284 million. Just rounding numbers off, 215 million is 38% of 565 million.
WORST CASE SCENARIO = AERO owns 62% of FCCN and we own 38%.
BEST CASE SCENARIO = AERO OWNS 51% of FCCN and we own 49%.
WHAT ABOUT THE 1.9 MILLION DOLLAR LOAN FROM FCCN TO AERO?
As per the October 4, 2007 PR, the value of the loan plus interest due was converted to AERO stock. But the funny part is that FCCN was already acquiring all of AERO's stock to begin with. This was just a fancy way of forgiving the loan and by doing it this way, as a loan and not a straight up cash payment, the TAX consequences are more favorable:
"The value of the loan and any accrued interest were converted into Aero Exhaust common stock as part of the share exchange, which increased the percentage of the public company's issued and outstanding common stock retained by Franchise Capital shareholders."
Read between the lines, it doesn't mean the loan conversion will increase FCCN's ownership of AERO, (we were already getting 100% of AERO in the exchange) it says FCCN shareholders will, as a result of the loan being forgiven (by converting it to AERO stock), retain an increased percentage of "the public company's" O/S. FCCN is the public company, not AERO.
All they are telling us here is that the forgiven loan was a huge bargaining chip in the final structure of the deal which led to the percentages listed above.
AERO has big dreams, big ideas and a revolutionary product, but they didn't have the manufacturing capacity to produce the product as fast as people were trying to buy it. They needed cash and they needed it fast to pay their bills, sponsors and for production and advertising. Things just starting moving faster for them than they were ready for. The 1 million sales mentioned in Hunsaker's court affadavit tells you where they were at in 2005, it doesn't tell you where they were going in 2006-2007 and beyond. Things really started to jump for AERO and they needed that 1.9 million. It was the low revenue from 2005, combined with AERO's possibility for outstanding growth which were drove the deal.
It looks like Peacock made one hell of a deal for all of us shareholders and for AERO as well. Peacock wasn't kidding when he said:
"Obviously, the Franchise Capital percentage will be considerably higher than just the value of the shell."
http://www.equitydigest.com/FCCN_AERO_CEOCAST.html
We own no less than 38% of AERO right now, and it's only our shares which will be traded for the next year. This was a truly visonary deal as far as protecting original shareholders of FCCN. And it tells you that AERO is in no hurry to cash in their stock. They don't want to sell it anytime soon. They believe in their products.
And now the kicker...
HOW CAN THE FLOAT BE SO LOW IF IHUB FCCN SHAREHOLDERS HOLD APPROXIMATELY 344,737,334 SHARES AS OF OCTOBER 4, 2007?
The FLOAT is somewhere between 215 Million and 284 million.
In post # 81319, Pietro posted to this board that the share count held by FCCN Ihub members was 344,737,334. Even assuming that's exagerated, let's reduce it to 300,000,000. That's still more than 50% of the FLOAT just counting us. Add in people all over the world who don't read this board and haven't told Pietro how many shares they own...
THEN CONSIDER OUR VOLUME WAS 59,000,000 ON LAST FRIDAY ALONE.
QUESTION: How can the FLOAT be so low? There's only one possibility.
ANSWER: NAKED SHORT POSITION MMs have been selling shares they don't have.
SHORT SQUEEZE ALERT!!!!
Good work. I just want to thank whoever posted this.
I need a win this time. My life is hard right now.
The negative and misleading DD posted here has been sickening and scary. This post gives me hope.
Thank you aeroshortcrusher. Thank you.
Here's a portion of it...
This is just from public data so I can't imagine why it would be removed but here goes.
If this doesn't get removed I'll post more.
---------------------------
ANALYSIS
The question isn't, "What percentage of AERO will FCCN own post merger?" No. That answer is easy. FCCN will own 100% of AERO stock. FACT
The question we need to answer is:
WHAT PERCENTAGE OF FCCN WILL AERO SHAREHOLDERS RECIEVE?
AERO will receive "up to 95%" of FCCN. "UP TO 95%" is the curveball. AERO will actually own much less than 95% of FCCN.
The April 16, 2007 10-Q states:
"Once the share exchange is complete, the Company anticipates that the shareholders of Aero will become the majority
shareholders of the Company." Majority = more than 50%.
http://sec.edgar-online.com/2007/04/...9/Section8.asp
KEY FACT:
The common shares FCCN shareholders already have purchased on the open market cannot be taken from us and given to AERO.
KEEP THAT IN MIND AS YOU READ THIS. From the October 4, 2007 PR:
"The definitive agreement between Franchise Capital and Aero Exhaust was executed in January 2007, and at that time, Franchise Capital announced that it expected to exchange up to 95% of its total issued and outstanding capital stock in exchange for all of Aero Exhaust's issued and outstanding shares."
It's impossible for FCCN to exchange 95% of its issued and outstanding capital stcok because FCCN doesn't own 95%. "Up to" can be anything "less than" 95%. And it must be substantially less than 95% because FCCN shareholders own alot of shares which were not exchanged and given to AERO shareholders. When they swapped shares last week, the FLOAT was not included.
http://www.franchisecapitalcorp.net/...4_07_Close.pdf
Stock market vocabulary becomes VERY important now.
O/S = "outstanding shares"
O/S = FLOAT + RESTRICTED SHARES
FLOAT = shares openly bought and sold without restrictions via trading on stock exchanges, ie the shares we own.
RESTRICTED SHARES are counted as part of the O/S but not the FLOAT.
[If you have trouble with these definitions read this article: http://www.marketmillionaires.com/ho...ng-shares-gene... ]
The 10K filed on October 1, 2007 proves that the FCCN O/S is 964,129,838.
http://www.secinfo.com/d16gRg.u3n.htm
The October 4, 2007 PR told us that 400,000,000 shares from the O/S were cancelled. Therefore, the current O/S is 564,129,838.
According to the PR, all FCCN stock to be handed over to AERO shareholders is coming from the O/S.
THE DEAL DOES NOT PROVIDE FOR ANY DILUTION WHATSOEVER.
AERO WILL ONLY RECEIVE A PERCENTAGE OF THE CURRENT O/S.
POST MERGER O/S = 564,129,838
With a. 019 price per share, MARKET CAP = $10,718,466
So what percentage of the current O/S is FLOAT and what percentage is RESTRICTED? This is a VERY important question. And I think the answer will really surprise you. Look at the Feb. 16, 2007 PR, which says:
As of February 15, 2007, the company had 921,183,413 shares of common stock issued and outstanding. Of this amount 747,807,988 shares are held in an escrow account for the benefit of Golden Gate Investors, Inc.
DO THE MATH Subtract "Restricted Escrow shares" from the "O/S" to get the "FLOAT."
921,183,988 - 747,375,425 = 173,375,425 shares.
173,375,425 shares in the FLOAT as of Feb 16, 2007.
http://www.franchisecapitalcorp.net/...-07_Def14A.pdf
Please note that the O/S only increased 42,946,425 shares between Feb 16 through October 1 according to the Oct 1st 10K.
The 42 million increase represents the EXACT amount of shares redeemed by GGI from the Escrow. This is proved by very simple math.
The October 1, 2007 PR gives the following numbers:
On September 25, 2007 GGI was owed $35,694 and 443,531,005 shares of common stock remained in escrow as of that date.
As of October 1, 2007, the balance remaining on the debenture was $27,539 and 430,871,055 shares of common stock remained in escrow.
$35,694 - $27,539 = $8155
443,531,005 - 430,871,055 = 12,659,950
So $8155 was equal to 12,659,950 shares.
27,539 divided by 8155 = 3.377
3.377 x 12,659,950 = 42,752,651
The O/S increased from from 921,183,413 on Feb 16 to 964,129,838 as of the 10K.
Then subtract the 400 million shares which have been retired and you get the current POST MERGER O/S of 564,129,838.
Yes. It was corroborated with public data.
It's truly an enlightening massive load of information. My head hurts, but I'm excited as all hell now.
Dr. Wonderful you rock!@!
Dr. Wonderful just sent me the entire aeroshortbuster post via PM.
It makes a strong case that we get at least 38% of the post merger company. I'm going over it carefully, will discuss shortly after having time to digest it.
I agree Dr. Wonderful. 38%
Did anybody save that post?
Damn. It was deleted. But that stuff about the float being less than 300Mil was the bomb.
If anybody saved that post, please PM me. I can't respond to PMs but I would really appreciate it. That post was the msot exciting thing I've read in this forum
You think it was an insider?
Finally some truth....
"until the 8K comes out my opinion is just BS!!!"
Agreed.
Hunsaker's statement about "1 million sales"
[Read the entire post. It's PRO AERO PRO HUNSAKER althugh may not appear so at first glance.]
I don't think that sweeping this under the rug and not having a rational discussion about it will do the PPS any good in the long term. I know it's uncomfortable, but if we can acknowledge it and find a rational explanation for it, we will be doing a necessary job.
If we just let it linger, it will come back and bite this stock in the butt again before all the smoke clears.
Clearly, for me anyway, this was the reason the PPS went South and why I sold shares on Friday. And this was certainly the punch line and reason the law suit documents were strategically posted yesterday.
The claims in the lawsuit made by the Plaintiff don't bother me at all. At first they appear a bit unnerving, but the lawsuit was apparently dismissed and most of the allegations were denied by AERO.
The law suit documents were posted in order to bring attention to Paragraph 21 of the Amended Answer which has a statement by Hunsaker, under Penalty of perjury, confirming that he told the plaintiff/Aero investor that Aero had sales of "1 million" dollars.
The statement was made according to Hunsaker, in Feb 2006. The documents were stamped June 2006. But this was an Amended Complaint so the first one was filed even sooner. Which tells me that this Plaintiff was suing them within weeks of buying shares.
Something isn't right about that. It's a very short window. Perhaps the investor just got scared or needed money and sued to get his investment back in a quick settlement? I don't know, but that seems like a very fast trigger. Sane people don't normally resort to litigation that fast, they try to work things out.
None of the allegations really bother me. Read the complaint yourself and decide, but I don't see anything very problematic.
The Plaintiff decided to invest in the company. The company told him they needed money to increase production, but they used the funds to pay a bill.
Big deal.
It's not like AERO took Plaintiff's money and spent it on prostitutes, whiskey and poker. AERO invested paintiff's money in the company.
The plaintiff also sued because AERO fired one of the creators of the patent. That's none of the shareholder's business. When you invest money, you don't get to run the company.
I don't see much in the complaint which makes me nervous about AERO or its management.
But we do have Hunsaker admitting to having said they had 1 million in sales. And that is the real reason the PPS went down fast.
Since we didn't have the time to fairly analyze this number and statement, many of us had a panic attack. And IMO, that was an anticipated result of the documents being unleashed strategically yesterday.
Having had the time to revisit Hunsaker's statements, I don't think it's necessarily bad. He made the statement in Feb 2006, so he's referring to some period in 2005. AERO has come a long way since 2005 and we know there has been substantial growth.
Remember, this is a company started in a garage. Still, I'm a little nervous about this number. I don't think anybody here would have believed that was all they had in 2005.
We know there's been growth and will know how much growth soon enough after the 8K.
Obviously, AERO is trying to become a big player. One million in sales for 2005 is not big, but it's obvious to me these guys are trying and making moves and they have a great product.
And they had one million in sales of a real product which my DD indicates people are loving. With more time to analyze all of this, I don't think it would have made many of us sell, but when hit with this info on the morning after the merger, and then the sky starts falling.
TEXTBOOK DEFINITION OF A BEAR RAID.
I fell down, I got up, I fell down again. I am still learning this game. But what happened here makes me sick.
The most important thing I draw from Hunsaker's admission in paragraph 21 is that he admitted to having said "1 million in sales." His "ANSWER TO THE COMPLAINT" denies most all of the other allegations, but he admits to having told Plaintiff they had 1 million in sales.
The fact that he admits to that makes me feel better about his character. It tells me that he said it and he wasn't hiding the fact that he said it. Unless the conversation was taped by Plaintiff, this could have been a he said she said thing and Hunsaker could have denied it in the Answer to the law suit, but he didn't deny it.
This tells me the guy is playing fair and true.
The documents he posted didn't involved two public corporations. The documents he published involved a private "Trust" and a private company, not publicly traded.
But the real issue is why he waited until yesterday to post those documents when he had them in his possession for six weeks.
Why were the documents released yesterday and not six weeks ago?
He refuses to answer that question.
DownWithPumpers,
What about this?
"This is a Restricted Web Site for Official Court Business only. Unauthorized entry is prohibited and subject to prosecution under Title 18 of the U.S. Code. All activities and access attempts are logged."
https://ecf.utd.uscourts.gov/cgi-bin/HistDocQry.pl?57023
Since you had the court documents six weeks ago, why did you wait until the day AFTER the merger to post them?
You provided a case name, but no documents. And "the documents you posted yesterday" never showed up until yesterday. So why the delay?
AJ, you are in a state of denial.
DownWithPumpers had the documents six weeks ago.
He didn't post them six weeks ago, he tried to lead others to them so they might break the law for him and his cronies. The PPS was about to explode yesterday, so the documents were unleashed with virtuoso timing for the most effect. But this was done illegally.
I never said you were here for respect, I just said that I've lost respect for you. I don't know why you're here, but I don't trust you as being a friend of FCCN. You're here to make money and you'll do and say whatever it takes.
I don't know if you would go as far as DownWithPumpers who broke Federeral law, but then again... I just don't trust.
"Are you a long?"
Read all of my posts today and you will have your answer.
AJ, I've lost all respect for you.
"I know, but after it was posted, the price stayed the same... not like it was a simultaneous thing..."
Of course it wasn't simultaneous. The court documents together are over 40 pages long. It took people some time to read them and that's why the PPS started dropping soon after he posted it.
This was no coincidence. DownWithPumpers was hoping somebody else would have broke the law for him, but confronted with over so many million shares bought... as the MMs held the PPS down regardless, they knew this was set to explode higher and they took a chance. They chose money over the law.
They won a short battle for money, but people may very well be prosecuted. I hope Hunsaker has the stomach to request that charges be filed.
"..Unauthorized entry is prohibited and subject to prosecution under Title 18 of the U.S. Code. All activities and access attempts are logged."
While PACER provides access to court documents for the public, it clearly, as evidence by the warning at the PACER site (quoted above), does not allow access and misuse of documents to which you have no legal authority to view or use.
The public can access documents which they are entitled to access, they arent allowed to access everything on PACER but there are ways to see things you're not supposed to see.
That's why when one clicks the documents link under the case link you provided, they are greeted with
"CM/ECF Filer or PACER Login
Notice
This is a Restricted Web Site for Official Court Business only. Unauthorized entry is prohibited and subject to prosecution under Title 18 of the U.S. Code. All activities and access attempts are logged. "
Keep laughing. We'll see who has the last laugh.
You still haven't answered the question.
Why did you wait until yesterday, if you had the documents for six weeks?
You think that wasn't a conspiracy?
You think that wasn't timed?
You think that was just a coincidence?
We're not talking about just the PPS drop. We're talking about the ILLEGAL use of PACER court documents that somebody had to have in their possession for at least a few days.
How do I know DownWithPumpers had the info for a few days and held it for the right moment?
BECAUSE IN ORDER TO GET PACER DOCUMENTS ONE MUST REGISTER WITH THE GOVERNMENT AND WAIT TO BE CLEARED BY THE GOVT WITH A PASSWORD
Registration is free, but the documents cost .08 per page and you must give a credit card.
Also, the registration form at PACER has, as one if its "mandatory" fields for registration, a box to include the law firm you are with.
You don't just waltz onto PACER like it's a free Yahoo mail box and get going on the spot. No, you send them the form and then the Government gets around to reading your application before making a decision on whether to issue you a password if you are qualified to get one.
Furthermore, the misuse of PACER court documents is criminal.
This was a conspiracy. No doubt about that.
DownWithPumpers didn't just stumble onto this and post it in Ihub by accident.
Conspiracy was PROVED = timing of lawsuit info
Anybody who doesn't put 2 + 2 together on the timing of the old lawsuit being dropped in just before the bear raid is just sleeping or lying.
We've been analyzing and doing DD for months. Just look above your head at the DD posted in this Ibox.
How is it that all of a sudden, on the day after the best news ever re: merger complete... one person shows up half an hour before the PPS goes into freefall and procedes, with relevant but clandestine DD, to scare the living S**T out of this board?
You think that wasn't a conspiracy?
You think that wasn't timed?
You think that was just a coincidence?
We're not talking about just the PPS drop. We're talking about the ILLEGAL use of PACER court documents that somebody had to have in their possession for at least a few days.
How do I know DownWithPumpers had the info for a few days and held it for the right moment?
BECAUSE IN ORDER TO GET PACER DOCUMENTS ONE MUST REGISTER WITH THE GOVERNMENT AND WAIT TO BE CLEARED BY THE GOVT WITH A PASSWORD[/B]
Registration is free, but the documents cost .08 per page and you must give a credit card.
Also, the registration form at PACER has, as one if its "mandatory" fields for registration, a box to include the law firm you are with.
You don't just waltz onto PACER like it's a free Yahoo mail box and get going on the spot. No, you send them the form and then the Government gets around to reading your application before making a decision on whether to issue you are a password if you are qualified to get one.
Furthermore, the misuse of PACER court documents is criminal.
This was a conspiracy. No doubt about that.
DownWithPumpers didn't just stumble onto this and post it in Ihub by accident.
THE GOOD NEWS re: Aero/FCCN share swap...
As I posted yesterday, I believe it's very possible that there may be something close to a 50/50 exchange of shares/value between FCCN and AERO.
ChangeDirector, your post I am responding to is close to what I was posting yesterday. This is the relevant statement from the merger PR:
"Franchise Capital announced that it expected to exchange up to 95% of its total issued and outstanding capital stock in exchange for all of Aero Exhaust's issued and outstanding shares."
I wrote a post yesterday entitled
"Does PR imply FCCN getting 50% of AERO?"
Look it up under my posting history. I guessed that the wording of the PR might imply that FCCN shareholders were getting more than an even split with AERO shreholders.
When you consider the revenue allegations found in that law suit, and the loan FCCN gave to AERO for 1.85 million dollars, than I believe FCCN shareholders ought to be getting a little more than 50%.
ChangeDirector, you said:
"In other words they wouldn't be issuing new shares.
At least the shares that the old Aero is getting will be restricted, so it seems this could somehow lead to a dramatic reduction in the float.
Let me be absolutely clear here that this means that current Aero holders are getting restricted stock, not at all that the FCCN shares that convert to the new AERO will be restricted. Those shares will be free trading, which is a good thing."
I think I agree with this. The PR language is confusing, but I think you are right. But let me clarify even further: I believe FCCN will own more than 50% of AERO.
If FCCN management swapped 95% of that portion of FCCN stock which was not already owned by the general public for ALL of the AERO stock, that gives FCCN something substantially higher than 50% of the new company.
Then add in the fact that we get even more because of the 1.85 million dollar loan.
I tried to get the word out on this yesterday and some people were paying attention because my post was republished by the moderators of "Hot Stock Articles". It's now been moved off of their main page but you can see the Google Blog search link here
http://blogsearch.google.com/blogsearch?hl=en&client=firefox-a&rls=org.mozilla:en-US:officia....
I wish more people would have discussed this when it was posted yesterday before the market opened because I believe that MMs and the pro bashers they employ were paying attention and that the possibility of my post being correct scared the living hell out of those who were short and looking for cheap shares.
Imagine where PPS would be today if the following things had happened yesterday:
1. This IHUB had been filled with logical discussions and Post headers like this "FCCN to own MORE than 50% of AERO via PR"...
2. NO bear raid caused by old lawsuit
3. Hunsaker named as CEO
4. MMs let the free market work
I think we can all agree that the PPS would be alot higher than Thursday's .026 close.
I firmly believe that the MMS were scared by the possibility of a short squeeze happening and that like a cornered rat, they attacked with a vengeance. Knowing that the SEC REG SHO rules will change in a few days, they were left with very little time to play this illegal game.
The good news for them is that their scam worked
The bad news for them is that they were forced to be BLATANT about how they did it.
And they misused legal documents and violated the terms of the PACER system and I believe there will be criminal charges brought when all the smoke clears. More on that topic in a follow up post.
The MMs were in possession of the old law suit information and had been holding it back waiting to let the price rise so that when they caused the BEAR RAID, it would have been that much more dramatic and devastating than it was yesterday.
But since there was a possibility that this IHUB board and the rest of the market might have had the time to analyze the possibility that FCCN was to own more than 50% of AERO, they decided to pull the trigger on the bear raid before they truly wanted to. And while it was pretty freakin scary, it would have been alot worse if the fall from grace was from a PPS of say .08 as SWVC recently had to cope with.
I have attempted to write a sincere honest analysis of the situation which some may read a as a pump. I can assure you, this is no pump.
I flipped a bit to save my azz on Friday. I smelled a rat and sold about 25% of my position at an average of .0265 early Friday. I then flipped with some buys at .0155 and sold everything at .0185
I currently do not own FCCN. I may buy back in depending on Monday's open. The play is currently a loss for me, but not a big one.
I hope people will read, analyze discuss and repost the information in this post as well as the post I am writing to follow it which is going to be titled
THE BAD NEWS re: AERO financial admissions
Some will be calling me a basher and some a pumper. I am neither. At this point, since we have the weekend to really pool our resources and get to the bottom of this situation, I hope we can come together and find some common ground and some truth which will help all of us make a better informed decision come Monday morning.
And for the one who started the fire on Friday, DownWithPumpers, please be aware that your desperate activity to benefit you and your MM overlords was illegal. It was a criminal conspiracy. More on this later.
L2 SCREEN GRAB in previous post.
Thanks, Nello. Question?
"Actually GGI has a bunch of shares from the last debt clearing middle of this week"
what does this mean? PR indicates GGI is done, are you talking about shares form earlier in the week which will settle?
And for the liars who are saying I've got the L2 wrong, see my previous post which has the Alphatrade L2 screenshot.
i wont be posting anymore today.
tough day but nothing, I mean NOTHIN in the fundamentals is correct about this price action
22 million volume and no PPS move . BS all the way
we'll just have to deal with it
we know what we own.
Nello, how do you read these L2s with 11 million bought well above ASK?
Am I missing something or are we being unfairly manipulated?
No, here is L2
you're wrong
NOT .028
.029 and .0295
<a href="http://img186.imageshack.us/my.php?image=fccnoct5panry5.jpg" target="_blank"><img src="http://img186.imageshack.us/img186/4760/fccnoct5panry5.th.jpg" border="0" alt="Free Image Hosting at www.ImageShack.us" /></a>
11 MILLION shares today way OVER ask
Where would the PPS be if those 11 million shares bought way above the ask were properly counted into the ASK and PPS?
You will see crappy little 10K sales drop the ask, but 11 milllion shares bought at .0295 with ask at .027 also makes the ASK drop.
What the hell is going on here? BUYs are supposed to raise the PPS, how can buys so far above the ASK drop the ASK.
Peacock and Aero NEED to call for an investigation.
Enough is enough. We're being robbed in plain site.
ROBBED. This is hi tech piracy.
HUGE 5 MILLION SHARE BUY well above ASK!!!
You make me sick. Your post says the L2 showed a 5 MILLION share dump, but the L2 shows that the 5 MILLION shares was at .029 with the ASK at .027
EXACT opposite of a dump.
OK< I feel serious desperation in the air.
We might be ready to roll now. Hold tight.
4 MILLION shares WAY above ASK
Yup, it's official. There is something very wrong about this stock activity today.
Over 2 million shares were bought in the last few minutes at .0295 with the ASK at .027
That's over 4 million today with ask at .027 and buys at .0295
It's like the wild west and there is
no sheriff
no law
no free market
what can we as shareholders do to get this stick to trade fairly and freely?
our rightly owned money is being stolen from us by people who have a license to steal
THE ASK IS A FRAUD.
If you are buying more than chump change I bet you have a lot of trouble getting filled.
I agree with this post Im replying to.
We are being sat on by MMs who must be very short. Anything could happen.
Why is there 386000 shares bought 2.5 ticks over ask
at 10:40 with ask at .027, somebody paid .0295 for 200,000 shares.
Then another 186,000 shares again at .0295 with ask at .027
so the ASK is basically a fraud if you're trying to buy with any sort of real money.
People must be having trouble getting filled at the ASK.
There is no doubt the MMs are manipulating peoples minds.
Something is not right about this. Last week when we didn't have a 10K and we didn't have a confirmed merger we were trading .03
so something is very wrong this picture and it isn't FCCN or AERO. They've done their part.
Something is rotten here, but it's going to blow up in somebody's face and it won't be FCCN longs.
FORD pumping AERO! THAT is the BOMB!!!
FORD advertising AERO at the FORD site...
Excellent DD. great post.
"Was just doing some digging on Ford's website and found this."
http://media.ford.com/newsroom/feature_display_foriframe.cfm?release=24113
"...The MRT Fusion T5 turns America's favorite sporty midsize sedan into the ultimate driving machine, integrating a turbocharged all-wheel-drive powertrain, refined handling and awesome style to provide a high-tech driving experience.....MRT Aero turbine exhaust completes the powertrain package...."