Biokey International Inc (BKYI)

[johnboy911]

WWTT takeover?
I think I understand the WWTT strategy. Two very interesting points in the 8K and WWTT’s release. In BKYI’s 8K, it states that WWTT would have voting rights on an as-converted basis. This is unusual for preferred stock. In the WWTT release, they state that they are investing UP TO $15M. The actual amount to be invested depends upon other things the current stock. Why would the current stock matter? I believe WWTT wants enough voting power to gain control of BKYI and will invest up to $15M to gain this control.

It makes sense. Who would give Mikey $15M to spend at his discretion? WWTT will immediately have one seat on the board, and with majority voting power will be able to make other changes on the board. They will be able to control how the $15M investment is spent. Mikey’s role as COB might be in jeopardy. A couple of bad quarters and even his job as CEO could be in jeopardy. (one can only hope)

So: WTCC invests up to 15M. WWTT get a 6% dividend with potential larger gains. WWTT is preferred if BKYI fails and is forced to liquidate. WWTT will have majority voting power, effectively in total control of BKYI.

So now the question is: what will WWTT do with the $15M? Should be interesting.