Rim Semiconductor Company (fka RSMI)

[spokeshave]

Not shady if you are one of the "investors" who benefitted from the pump. Figure an average "pump" price of about $0.16, at 40 million shares, that adds up to a tidy little sum of about $6.4 million.

So, for lending RIM $3.5 million, these guys got this in return:

7% interest
30% discount on death spiral shares
$6.4 million on the warrants

That totals just short of $8 million that this group of "investors" made in profit out of lending RIM $3.5 million. That does not include anything they might have made on shorting the stock during the death spiral. What did all of this get RIM? Well, they spent -0- cash on R&D in FY2005. Not a single penny. The 10-K indicates that they spent $366K on R&D, but *all* of that was stock-based compensation.

So, in summary, last year the company raised $3.5 million in cash. This cost them almost $8 million in dilution to do it. Of that $3.5 million in case, they spent -0- on R&D.

Yup. Sounds like an emerging semiconductor provider to me...