Viratech Corp. (VIRA)

[TraderLady]

RESPONSE FROM JAMES - Well finally got a response to my email (I won't say an answer to it but a response.) No real answers to questions, but his email was extremely defensive (why take that tone unless you have something to hide from the questions asked)..........don't understand where his tone is coming from as my email was cordial and business related only (correct me if I'm wrong) Now I'm seriously considering cutting losses now. Down 65% already, but would rather be down 65% than 100%.


>>>Dear LB,

I am not going to get into the specifics of every single percentage.
Here is the bottom line:

-For every movie there is always a LLC created. This is for
accounting as well as security purposes. Each project is has a finite
time and hires many different people for a limited time. Most of the
people who work on the project are just for a limited time so it is a
complicated parole system. It would be legally and financially
irresponsible to not have a separate financial structure for each
project.

-We have made it clear many times that we found our projects through
sale of units of restricted convertible shares and a small percentage
of the movie. This is for the investors who FUND the movies that we
can all benefit from. The only reason we opened a REG D is because of
going over budget on SIIR. I also know that Ken himself even
contributed financially to that movie because it went over budget.

-So let me get this straight? Investors don't want us to sell shares
on the open market. They don't want us to sell restricted shares.
They don't want us to give away a percentage of the movie. They don't
want us to pay for anything with stock. They don't want us to take
out a loan that would require interest. So how exactly do they expect
us to fund our initial movies till we get a steady stream of income
from our projects?

-If investors think that it is so easy to raise money, why don't they
invest in our movies for restricted shares and a percentage? Anyone
who thinks that we are giving away too much is welcome to take
advantage of us and buy one of our units. Welcome to capitalism.

All the best,

James