RushNet Inc (RSHN)

[sojourner]

I estimate float is 1.52 billion, up only 300 million from Nov 2005. Here’s why…

Old numbers from November 5, 2005 NR:

Public Float: 1,272,418,582 shares
Restricted (Corr etc.): 719,133,280 shares
Issued and Outstanding: 1,991,551,862 shares
Authorized Shares: 4,000,000,000

I figure RSHN was selling stock in order to raise capital, and they hit the 4 billion ceiling. Then, they authorized (but didn’t issue) another 2 billion a few days ago for other purposes like acquisitions, NOT for working capital. Why? It's simple.

#1 Rushnet doesn't need money now.

#2 Why would Lynch want dilution of his shares?!

Rushnet is getting $615,000 and "additional commitment for inventory capital of $2.4 million" from Lynch. No reason to issue and sell the extra 2 billion authorized shares. Leave them authorized, but not issued, for acquisitions.

It's all about growth through acquisitions. That is Lynch's game if you read his bio.

I figure we now got a share structure like this:

32% Corr etc.-- 1.28 billion (restricted)

30% Lynch-- 1.2 billion (restricted)

38% Public-- 1.52 billion (free trading)

And an extra 2 bllion authorized but NOT issued.

OPINION.