World Surveillance Group Inc (fka WSGI)

[bagelboy]

Insighter, my reasoning is as follows:

1. The shareholder letter from the CEO of 5 June which Pagan has recently re-referenced states very clearly why LTAS was sold. It states that WSGI did not have the capital to properly build it out. If WSGI could not finance this subsidiary why hold on to it and let it underperform when orders for their products were received. One option was to sell it for cash and shares of DAC.
We do not know what the final selling price will be because share price and DAC incorporation have not been finalized. so it is a mute point at this juncture to speculate on true selling price for LTAS.

2. I am speculating here but possibly consideration was given to
the fairness of the origonal deal with the Hess's. Maybe it was just the right thing to do to find investors that would properly
fund this business so it can flourish and to do that this deal was arrived at. Just my opinion.

3. The phrase *legacy issues* is repeated ad infinitum in the letter. possibly this deal was a way to protect assets barring any
litigation which might arise. One way to do this would be to place a subsidiary into a holding company for protection. This might be a stretch but stranger things have happened and again this is just my opinion.

4. I have met Glenn Estrella at the first shareholders meeting and have talked to him and trust him. He is a very bright, dynamic, and intelligent person. I would give him more time to let his plan unfold.

R,
Bagelboy